How Do I Get the Money From a Tax Credit?
When you sign up for health insurance in a Marketplace, you'll have a few choices for how you'd like to use the money from a tax credit.
- You can use it in advance. In this case, you don't receive any money directly. Instead, the IRS sends a monthly payment to your insurance company to pay part of your premium. You pay the rest of the premium.
- You can split the money between premiums and a tax refund. You choose how much of the credit you want to go toward your premium each month. You get the rest of the credit as a tax refund.
- You can pay all of the premium yourself and apply the tax credit to your taxes. When you file your taxes, you can subtract the full amount of your tax credit from the tax you owe. If you don't owe any taxes, then you'll get a bigger refund.
What Should I Do If My Job or My Income Changes?
If you get a new job that makes you ineligible for the credit, tell your state's Marketplace. Every Marketplace will have an 800 number, so call and talk with a representative. If you don't, you may have to pay back advance payments the IRS made from the time you became ineligible.
If your income goes down, call a representative at your state's Marketplace because you may be able to get a larger tax credit or qualify for Medicaid.
If My Income Qualifies Me for Medicaid but My State's Not Expanding It, Can I Get a Tax Credit or Cost-Sharing Subsidy?
It depends on your income level. In general, you may be able to get financial aid if your income for 2013 is:
- $11,490 to $15,856 for one adult
- $23,550 to $32,499 for a family of four
The amounts for people who live in Alaska and Hawaii will very.
Unfortunately, people with even lower incomes may find themselves without financial help for health insurance.