ACA income minimum limits-what if not enough income in 2024

Forum|Forum|2 years ago
February 4, 2024
1 reply
0 views

For 2024, I'm helping my adult grandsons (college students ages 22 and 23....currently not working but hope to) get their own medical coverage after their coverage with their Mom's COBRA plan lapsed last July(her error, but too late now). I'm looking at coverage for them through the Marketplace but if we chose that, and they take the advance ACA credit:

...is there a minimum income requirement for ACA credit for 2024? Is it calculated annually or monthly?

...what happens if they don't meet the minimum income requirement? Do they lose the credit entirely and have to pay ALL of the advance back or just part of it?(like what if one only made $10,000 for the year and the other one didn't work at all)

...neither are employed at the moment, but hope to get jobs(one is part time student, other is full time student) One has a paid summer internship....assuming it actually happens

***I think I need a crystal ball here 🙂 and answers on the internet are hard to find. To be clear, I prepare the taxes for all of my various family members, am pretty familiar with the tax code(at least the parts I have had to use) but this isn't anything I've ever needed to know.

***please help me.....I'd hate to advise them wrong and have them be faced with a big tax bill at the end of the year!

TurboTax Home & Biz Windows

Best answer by Bsch4477

...what happens if they don't earn the minimum income requirement(100% of Fed Poverty Level)? Do they lose the credit entirely and have to pay ALL of the advance back or just part of it?(like what if one only made $10,000 for the year and the other one didn't work at all but had $1800 in interest income)

You pay back the credit if your income was too high not too low.

Bsch4477

Employee

Assuming the college students can be claimed as dependents they are not eligible for the premium tax credit. They can be covered by the parent.

Perplexed TaxpayerAuthor

They are not dependents, but file their own tax return.

Bsch4477

Employee

Have them talk to the Marketplace. If their incomes are low enough they could qualify for Medicaid. If their incomes are high the marketplace will tell them what, if any, premium tax credit they are eligible to get. Once they have coverage they should inform the Marketplace of any change in income.