Stating Your Income For a Health Insurance Subsidy

Be careful not to get TOO MUCH subsidy. At the end of the year, the IRS will review how much subsidy you received, and what you should have received. If you ended up getting too much subsidy, you’ll have to pay it back, and if you didn’t get enough subsidy, you’ll get it back on your tax return.

For example, if your premiums are $1,000/month and you get an Advanced Premium Tax Credit of $800/month and you only have to pay $200/month. When you do your taxes and file your tax return that year, the Government will check your income. If you were only supposed to receive an Advanced Tax Credit of $700/month instead of $800/month ($100 difference), you’ll owe the IRS an extra $1,200. This is only an estimate, and the actual amount will depend on your Federal Poverty Level.

Throughout the year, if your income goes up or down, or you have changes to your family, you need to notify your agent of these changes.

Changes That Help Higher Income Individuals and Families

More Nevadan’s may now be eligible for health insurance tax credits. For existing members, you may be entitled to a higher tax credit. If you previously were denied assistance, you may now be eligible to receive a Government subsidy to help pay for your health insurance premiums. Before these changes, if your income was over $51,040 for a single person in tax year 2021, or $104,800 for a family of 4, you were not eligible for a tax subsidy because your income was too high.

Now there is no income limit to receive these subsidies. The subsidy amount gradually slopes off to where your monthly premium is no more than 8.5% of your household income (modified adjusted gross – for most people, their “Adjusted Gross Income”). So, for many Nevadan’s, they’ll now be eligible for tax credits! This is AMAZING news and will make a HUGE difference in so many people’s lives.

For example: If you were a 60 and 61 year old married couple, and your income was projected to be over $68,960 in 2021 you would not have qualified for a tax credit. Now, since the changes, that same couple making $80K per year would qualify for $1007 per month in assistance!

Eligibility Requirements for the Advanced Premium Tax Credit

The American Rescue Plan Act ensures that all households including those who earn more than 400% of the federal poverty level, can receive a premium tax credit if the cost of the “benchmark plan” (2nd lowest cost Silver plan in Nevada) would otherwise amount to more than 8.5% of the household income. Also, you don’t qualify for a subsidy if you have Medicaid, have insurance offered through a parent, spouse, VA, CHIP, employer, or others. This may change in the future. In addition, you must file taxes and reconcile your taxes each year.

Let Nevada Insurance Enrollment Guide You

Enrolling into a health insurance plan can be confusing, with so many steps in the process, it’s easy to get lost in the chaos. Let one of our experienced local health insurance agents guide you through enrollment. Having an agent help you doesn’t cost you anything, the service we offer is FREE.