There are times when the healthcare marketplace can be confusing. I address some of the commonly asked questions and "need to know" factoids in this month's article to clear up some of the mistakes made when signing up for a marketplace plan.
Healthcare.gov says:
I understand that because the premium tax credit will be paid on my behalf to reduce the cost of health coverage for myself and/or my dependents:
- I must file a federal income tax return for the 2023 tax year.
That means:
For those in certain income brackets, a tax credit may help reduce your premiums.
The credit is paid on your behalf, and you must file a tax return for that year
Healthcare.gov says:
If anything about your income or taxes changes:
- I also understand that when I file my 2023 federal income tax return, the Internal Revenue Service (IRS) will compare the income on my tax return with the income on my application.
- I understand that if the income on my tax return is lower than the amount of income on my application, I may be eligible to get an additional premium tax credit amount. On the other hand, if the income on my tax return is higher than the amount of income on my application, I may owe additional federal income tax.
That means:
It is imperative to notify your agent, or the marketplace, if your income or eligibility changes. A comparison of your income by the IRS ensures that no changes are needed. You may have to pay back the difference to the IRS if the amounts are inaccurate or you will be disqualified from the credit. You may end up paying a lot more for your policy as a result.
