Obama care

Jen727
Jen727 Member Posts: 1 Newcomer
in Live Q/A Event

ok so I have a question regarding Obama care. I signed up before I had a job and put for income far less than what I actually made for this year. I got my premium covered by the tax credit. What does that mean for income tax season?

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Answers

  • JulieS
    JulieS FreeTaxUSA Agent Posts: 14 Level 3

    Hi Jen727,

    When your income changes and you have health insurance through the marketplace, you should immediately update your reported income. Please see the following link:

    https://www.healthcare.gov/reporting-changes/why-report-changes/

    The credit toward the premiums you have been receiving would be considered Advanced Premium Tax Credit payments.

    Please see the following Community article regarding the Premium Tax Credit:

    Paying back the premium tax credit due to increase in income

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  • AlexO
    AlexO FreeTaxUSA Agent Posts: 102

    Jen727,

    That is a great question!

    If you received more premium assistance than you qualified for based on your household income for the year, you may need to repay all or some of the premium assistance when you file your tax return.

    You should receive a Form 1095-A, which will list the assistance received and the premium costs. When you enter that when filing your tax return, our software will determine how much, if any, of the premium assistance you must pay back.

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