Obamacare subsidized health insurance
Obamacare subsidized health insurance. People who are eligible to enroll in health insurance plans that operate under the law known as Obamacare actually receive a subsidy from the government. With this subsidy, the government pays part or all of the private health insurance premium to individuals or families whose income is between 100% and 400% of the federal poverty level.
You do not receive the subsidy money in your bank account, the payment occurs through a credit. That is, the government takes your tax credit for the year and pays it to the insurer to offset your health coverage premium.
This tax credit is established depending on the income that a person or family expects to receive during the following year -in this case, 2023-. It is important to take into account that, when making the income projection these are overestimated, and the insured will receive a refund in his tax credit. Otherwise, if they are underestimated and actual household income is higher than projected, part of the money advanced by the government must be offset on the tax return.
For this reason, every year, starting in January, the health insurance market sends families the 1095-A form that reflects the subsidy received. This return must be presented to the person who prepares your taxes to include it in the return. It is key that you know that without the 1095-A, your tax return would be incomplete and you would not receive the long-awaited refund from the IRS. Obamacare subsidized health insurance.