Your health insurance subsidy is determined based on your income, so if your income changes, be sure to update that information with the state or federal agency you use to access insurance.
If your income dropped significantly, you may be eligible for a larger subsidy.
On the other hand, if your income increased significantly, you may not be eligible for the same subsidy. If you don't update your information on the marketplace you could end up with a hefty tax bill at the end of the year because they'll expect you to pay back part or all of your subsidy.
To avoid this situation:
- Log into your HealthCare.gov account, or the state exchange you use to access health insurance
- Choose the option to “Report a life change”
- Update your income
- Verify and confirm the new information
Everyone’s situation is unique, we are happy to answer any questions you may have about how subsidies affect your tax return during your appointment. Head on over to BrassTaxes.com to create an account and book an appointment.