Depending on your income, you may be eligible for financial assistance to help pay the monthly premium for your health insurance. The amount of financial assistance you can qualify for is based on your age, your zip code, and your income, as well as the price for the “benchmark” plan in your zip code.
The Federal Poverty Level (FPL) is adjusted each year, and the eligibilty (and amount you qualify for) will change each year. Until tax year 2025, there is no subsidy cliff on income to qualify for tax credits. It just comes down to the math on whether you qualify.
The math is relatively complex, but let us know some details about your situation and we can help you determine if you’re eligible! Even if you’re offered a group plan through your job, if it feels too expensive for yourself or your family, let’s double check to see if we can make it work for you.
The income that is calculated for these tax credits is called the Modified Adjusted Gross Income (MAGI). For many people, that is the same as your AGI on your tax return. However, there are some items that are excluded from your AGI that are included in your MAGI. Talk with your tax preparer to make sure you have the right numbers!
Part of the tricky bit is that the tax credits are based on your anticipated MAGI for the tax year in which the insurance takes place. That means, for coverage starting January 1st, 2023, the income that you’ll need to calculate is your anticipated income for tax year 2023.
If your income is below 138% of the Federal Poverty Level, then you’ll likely qualify for Medicaid.