Question

Unemployment insurance

Forum|Forum|4 years ago
September 9, 2021
1 reply
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I am eligible to receive health insurance through healthcare.gov (the government pays part of my insurance premium). In order to determine the amount of premium they are going to pay, I am supposed to estimate my income for the year. I don’t know what it will be, because I don’t know if I’ll get a job or not. Right now I know what it will be if I don’t get a job.... I am worried If I underestimate my income, that I will have to pay the government back part of the premiums they paid on my behalf. What should I do? I need health insurance, but I definitely don’t want to own any money next year at tax time. Do you know what percentage of the premiums they would make me pay back?

AdamNe

@eburnham64 , great question!

You are correct that if you underestimate your income, you may be required to pay back Premium Tax Credit amounts that it turns out you are not eligible for.

You should estimate your current income to the best of your ability. Then, if your income changes during the year, immediately alert the marketplace so you can adjust your Premium Tax Credit.

As far as the amounts you are required to pay back, there are many factors that go into determining the calculation. The repayment amount is limited, based on your income as a percentage of the federal poverty level. See the attached chart. The column on the left is the percentage of the federal poverty level, and the two columns to the right are the maximum repayment amounts based on your filing status.

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