The tax breaks and subsidies available under the Affordable Care Act (ACA) are based on income, not employment status. If you have one or more sources of income (rental property income, unemployment compensation, etc.) you may or may not qualify for a subsidy or tax break, even if you’re not currently working.
How Do I Know whether My Income Level Disqualifies Me for a Subsidy?
Individuals will generally qualify for a lower premium on a health plan through the healthcare marketplace if their income is $45,960 or less; for a family of four, $94,200 or less. Individuals with incomes between $11,670 and $28,725 may qualify for a lower premium as well as reduced out-of-pocket costs; a family of four earning between $23,850 and $58,875 may also qualify for both reduced premium and reduced out-of-pocket costs.
Whether an individual, couple or family will qualify for a subsidy depends on income level and household size.
How Do I Estimate My Income?
You should include any wages, salaries and tips you expect to earn in 2014 in your estimate, as well as net income from any self-employment or business, unemployment compensation, alimony and Social Security payments, including disability, but excluding Supplemental Security Income (SSI). There are some things you should not include when estimating income, including child support and workers’ compensation.
Thankfully, you don’t need to know exactly what to include or not include in advance, nor will you have to figure out your household income or modified adjusted gross income yourself. When you apply for coverage through your state’s health insurance exchange (if available) or the federal exchange, the system will calculate these things for you with the income and household information you include on the application.
It’s always best to consult with an expert, such as the licensed agents at Benefit Packages, to determine your best options for coverage, whether inside or outside of the health insurance marketplace.