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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsQuestion about ACA and income changes...
If you get insurance through the exchanges, do you have to report every time your income changes? I can't seem to find any information on this. Am I correct in thinking that if you qualify for the subsidy originally and your incomes changes so that you do not qualify, you'll end up having to pay that back at tax time, right? What about the other way? Let's say you do not qualify now, but you lose your job or maybe you just move to a lower paying position (maybe if working contract gigs), would you call them up to get that adjusted? I noticed the report life changes link on the healthcare.gov site, but it doesn't work yet, nor does it list income changes in the reasons it gives to use it.
PoliticAverse
(26,366 posts)These questions are answered on the IRS website on the ACA.
IRS ACA homepage: http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home
From: http://www.irs.gov/uac/The-Premium-Tax-Credit
Report income and family size changes to the Marketplace throughout the year. Reporting changes will help make sure you get the proper type and amount of financial assistance and will help you avoid getting too much or too little in advance. Receiving too much or too little in advance can affect your refund or balance due when you file your 2014 tax return in 2015.
For example, if you do not report income or family size changes to the Marketplace when they happen in 2014, the advance payments may not match your actual qualified credit amount on your federal tax return that you will file in 2015. This might result in a smaller refund or balance due.
penultimate
(1,110 posts)Thanks.
winstars
(4,220 posts)balance due will change.
If I make MORE than I thought I would, my subsidy would be lower and therefore I would get less of a return or maybe owe them $$$.
if I make LESS than I thought I would, my subsidy should be higher and I would then get a bigger refund.
Am I correct in thinking this???
PoliticAverse
(26,366 posts)winstars
(4,220 posts)If you make a lot more that actually decreases or eliminates your subsidy, you have to pay it back naturally when you do your taxes.
And this is only if you don't care to "update" them during the year about changes to your income.
PoliticAverse
(26,366 posts)underpayment: http://www.irs.gov/taxtopics/tc306.html
"Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller."