How does my health insurance plan affect my taxes?
Your ACA health insurance plan can affect your taxes in a few ways:
Premium Tax Credits: If you purchased your plan through the Marketplace and qualify for income-based subsidies, you'll receive premium tax credits to help lower your monthly premiums. These credits are typically advanced to the carrier on your behalf throughout the year, reducing your monthly premium payments.
Reconciliation: At the end of the year, you'll need to reconcile the premium tax credits you received with your actual income. This is done through your 1095-A form. If you received more credits than you were eligible for, you may need to repay the difference. If you received less, you may be eligible for a refund.
Premium Tax Credits: If you purchased your plan through the Marketplace and qualify for income-based subsidies, you'll receive premium tax credits to help lower your monthly premiums. These credits are typically advanced to the carrier on your behalf throughout the year, reducing your monthly premium payments.
Reconciliation: At the end of the year, you'll need to reconcile the premium tax credits you received with your actual income. This is done through your 1095-A form. If you received more credits than you were eligible for, you may need to repay the difference. If you received less, you may be eligible for a refund.
Updated on: 07/10/2024
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