Stating Your Income For Health Insurance Subsidy

Subsidies Directly Tied to Your Tax Returns

The subsidies you receive are directly tied to your tax returns, so if you have income changes or life events, you must make certain that these changes get reported. If you forget to make an adjustment to your income or your family size, and the government keeps subsidizing your health insurance, you will have that money taken out of your tax refund when you file your taxes. The IRS at the end of the year will adjust what you’ve received, and what you should have received, and that will be taken from your tax refund, or worse, you’ll have to pay the IRS back. If your income went down, or you had more people in your family to support on the same income, then you may be entitled to get a larger tax refund or receive a larger subsidy.

For example: If your health insurance premiums are $1,000/month and you get a Government Subsidy of $800/month you’ll only have to pay $200/month. At the end of the year when you do your taxes, the Government will check your income. IF you were only supposed to have received an Advanced Premium Tax Credit (Subsidy) of $700/month instead of $800/month, you’ll owe the Government an extra $100/month X 12 months which equals $1,200. Ouch!

Have Changes? Simply Call Us

We suggest that any time you have a change to your income or your family, that you call us. Let us know of the changes and we will take care of making the adjustments to your account to keep your account updated and out of trouble.

Does Your Income Change Regularly?

If you have an income that goes up and down monthly, you’ll want to make those changes monthly, or try to average the income out monthly and divide by 12 months. You can also estimate your yearly income and at the end of the year, the IRS will calculate if you were over-subsidized (received too much subsidy and you owe money), or under-subsidized (you get a refund).​

What’s The Most I Would Have to Repay the IRS?

Repayment Limits for Advanced Premium Tax Credits: 2024 Tax Year

You must repay the difference between the amount of premium tax credit you received and the amount you were eligible for. There are also dollar caps on the amount of repayment if your income is below 4 times the poverty level.

The IRS States You Are Responsible

The IRS stated that people who miscalculated their incomes, or if the website (Nevada Health Link) miscalculated their “Subsidy”, whether intentional or not…would be responsible. People who enrolled into a health insurance plan and received a government subsidy, if their subsidy was miscalculated and you were given more than entitled, you will be required to pay this money back.

We gently warn our customers to be honest and careful when doing your health insurance plans through Nevada Health Link. If you intentionally or unintentionally miscalculate your income, there will be a settlement with the IRS when you do your taxes. This notice is not meant to scare you, but to educate and inform you.

This just solidifies our long-held view that you need to be very careful and accurate when you apply for a subsidy from the Government to help pay your premiums. Ensuring that you accurately state your “MAGI” (modified adjusted gross income) is very crucial. If you don’t know your MAGI, you can ask your accountant, or click for definition. After you have your MAGI, you can call us for assistance in obtaining your health insurance plan.

Discussing Subsidies With Nevada Insurance Enrollment

Navigating through the many options of insurance can be confusing and difficult, but speaking with a local, licensed insurance agent will help you to obtain the coverage you need and receive subsidy you deserve. We have licensed health insurance agents ready to assist you with all of your health insurance concerns. We will guide you and help you choose a health insurance plan based on your needs and budget. Call us today!