The Impact of Marriage and Income on Affordable Care Act (ACA) Premium Tax Credits
Many people rely on the Affordable Care Act (ACA) premium tax credits to help them afford health insurance. These credits are available to individuals and families with incomes below certain limits. However, the amount of the credit you receive can be affected by your marital status and income.
Marriage and ACA Premium Tax Credits
If you get married, your income and your spouse’s income will be combined to determine your eligibility for ACA premium tax credits. This means that if your spouse has a higher income, you may not be eligible for as much of a credit as you were when you were single.
For Example: John received a $3000 premium tax credit in 2018. He got married in August of 2018. His wife’s income caused him to repay a portion of his premium tax credit. John completed Form 8962 himself and found that he only needed to pay back a portion of the $3000 credit he received.
If you get married and your income increases, you may need to repay some of the premium tax credits you received. The amount you have to repay will depend on your income and the amount of the credit you received.
Income and ACA Premium Tax Credits
Your income can also affect the amount of the ACA premium tax credit you receive. The higher your income, the lower your credit will be. If your income decreases, you may be eligible for a larger credit.
What if I have to repay ACA premium tax credits?
If you have to repay ACA premium tax credits, you will receive a notice from the IRS. You can repay the credits by sending a check or money order to the IRS. You can also repay the credits through the IRS website.
If you are not sure how to file your taxes or if you have to repay ACA premium tax credits, you should seek the help of a licensed agent. A licensed agent can help you file your taxes correctly and ensure that you receive all of the credits and deductions that you are entitled to.
Conclusion
If you are married or if your income has changed, it is important to understand how these changes may affect your ACA premium tax credits. If you are not sure how to file your taxes or if you have to repay ACA premium tax credits, you should seek the help of a licensed tax preparer.
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