What disqualifies you from the premium tax credit for health insurance?
Asked by: Prof. Vincenzo Shields V | Last update: July 17, 2025Score: 4.9/5 (49 votes)
Why am I not eligible for premium tax credit?
Why am I not seeing a Premium Tax Credit? 2020 Why am I not seeing a Premium Tax Credit? 2020 Your income is too low. To qualify for the credit, your income (Modified AGI) had to be at least 100% of the Federal Poverty Level, which is $19460 for a household size of two.
What disqualifies an employee from being eligible for an advance premium tax credit?
An offer of employer-sponsored coverage generally makes an employee ineligible for a premium tax credit. The exception is if the employer-sponsored coverage is unaffordable or fails to meet the minimum value standard.
What is the maximum income to qualify for premium tax credit?
The premium tax credit is available to individuals and families with incomes at or above the federal poverty level who purchase coverage in the ACA marketplace in their state. Through the end of the 2025 coverage year, there is no maximum income limit for the premium tax credit.
Who is eligible for the health coverage tax credit?
Your tax credit is based on the income estimate and household information you put on your Marketplace application. Income between 100% and 400% FPL: If your income is in this range, in all states you qualify for premium tax credits that lower your monthly premium for a Marketplace health insurance plan.
How Premium Tax Credit works (ACA Subsidies Explained) | Obamacare
How can I avoid paying back my premium tax credit?
Report any changes in your income during the year to the Marketplace, so your credit can be adjusted and you can avoid any significant repayments at the end of the year.
What is the highest income to qualify for ACA?
In 2025, you'll typically be eligible for ACA subsidies if you earn between $15,060 and $60,240 as a single person. A family of four is eligible with a household income between $31,200 and $124,800.
Why do I have to pay back my health insurance tax credit?
If at the end of the year you've taken more premium tax credit in advance than you're due based on your final income, you'll have to pay back the excess when you file your federal tax return. If you've taken less than you qualify for, you'll get the difference back.
Who is not eligible for Obamacare?
Must live in the United States. Must be a U.S. citizen or national (or be lawfully present). Learn about eligible immigration statuses. Cannot be incarcerated in prison or jail.
How is the premium tax credit calculated?
The amount of the Premium Tax Credit is generally equal to the premium for the second lowest cost silver plan available through the Marketplace that applies to the members of your coverage family, minus a certain percentage of your household income.
Do I have to pay back excess advance premium tax credit?
In addition, you may have to pay back some or all of the advance credit payments made on behalf of you or an individual in your tax family. Advance payments of the premium tax credit are reviewed in the fall by the Marketplace for the next calendar year as part of their annual enrollment process.
Why am I not eligible for an advance?
You might be refused an advance if you: have enough money to last until your Universal Credit payment. live with your parents, relatives or friends. have any final earnings or redundancy payments.
Can I refuse health insurance from my employer and get Obamacare?
Obamacare is available to everyone, whether or not their employers offer insurance. From a practical standpoint, though, there are financial consequences to doing this. Often, an employer subsidizes part or all of their employees' coverage.
What disqualifies an employee from being eligible for an advanced premium tax credit?
For tax years other than 2021 and 2022, if your household income on your tax return is more than 400 percent of the federal poverty line for your family size, you are not allowed a premium tax credit and will have to repay all of the advance credit payments made on behalf of you and your tax family members.
What is the income limit for ACA subsidies in 2024?
In 2024, an individual in a one-person household is eligible for some degree of Covered California subsidies if they earn up to $33,975 Meanwhile, that limit rises to $69,375 for a household size of 4. These numbers refer to your Adjusted Gross Income (AGI) as found on line 11 of your Form 1040.
What is eligible and ineligible tax credit?
Only registered businesses under GST can claim ITC, while unregistered persons and those opting for the composition scheme are ineligible. To claim ITC, a registered person must have a valid tax invoice, receive the goods and services, and ensure taxes are paid to the government.
What are the income limits for premium tax credit?
Premium tax credits are available to people who buy Marketplace coverage and whose income is at least as high as the federal poverty level. For an individual, that means an income of at least $15,060 in 2025. For a family of four, that means an income of at least $31,200 in 2025.
Can you be turned down for Obamacare?
No insurance plan can reject you, charge you more, or refuse to pay for essential health benefits for any condition you had before your coverage started. Once you're enrolled, the plan can't deny you coverage or raise your rates based only on your health.
How do I avoid premium tax credit repayment?
Avoiding or Reducing Premium Tax Credit Repayments
The key to reducing the amount of premium tax credits you have to repay is keeping your household income below 400% of the federal poverty level. As long as your income is below this level, your repayments are capped.
What happens if I underestimate my income for Obamacare in 2024?
For the 2024 tax year, if you underestimated your income and received a larger tax credit than you were eligible for, you must repay the difference between the amount of premium tax credit you received and the amount you were eligible for.
Can you get a refund for health insurance premiums?
Federal/State Law
Federal law allows a refundable premium tax credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace.
How does the health care tax credit affect my tax return?
Advance payment of premium tax credit
On Line 26, you'll find out if you used more or less premium tax credit than you qualify for based on your final 2024 income. This will affect the amount of your refund or tax due. Include your completed Form 8962 with your 2024 federal tax return.
What is the best health insurance for unemployed people?
The best health insurance for unemployed individuals depends on your specific needs and financial situation. Medicaid offers health coverage for those with little to no income. For others, the Health Insurance Marketplace may provide affordable plans, especially for those eligible for financial help to lower costs.
Does social security count as income for Obamacare?
Include both taxable and non-taxable Social Security income. Enter the full amount before any deductions. Include all unemployment compensation that you get from your state.