Among the most attractive features of the Affordable Care Act (aka Obamacare) are the tax credits that are available to low income families to make health insurance more affordable. If you purchased your health insurance through one of the Exchanges (either Federal or state-based), you qualified for a tax credit or other subsidies if your household falls below 400% of the Federal Poverty Guidelines.
However, those tax credits and subsidies depend on your estimate of earnings for the coverage year.
The amount of tax credit that you actually qualify for can change throughout the year, in two ways:
- Change in Earnings – Examples are raises or pay cuts, layoffs, changing of jobs to a higher or lower income job, or the loss of a job. Whether higher or lower, your income will be off from your original estimate.
- Change in Household Status – Getting married, divorced, or having a baby are examples of a chang…