Can Your Child’s YouTube Income Impact Your ACA Health Insurance?

It’s understandable to be concerned about the impact of your child’s YouTube income on your family’s health insurance coverage. The Affordable Care Act (ACA) considers certain types of income when determining eligibility for subsidies and premium tax credits.

ACA and Child’s Income

Generally, your child’s income is not counted against your family’s income if they are under the age of 18 and are considered your tax dependent. However, if your child is required to file their own tax return, their income will be included in the household income used to determine ACA eligibility.

Taxable Income

For children, only certain types of income are taxable. This includes:

Earnings from self-employment (e.g., YouTube income)
Investment income (e.g., dividends, interest)
Prize and lottery winnings

Impact on ACA

If your child’s YouTube income exceeds the annual tax filing threshold, it can increase your family’s Modified Adjusted Gross Income (MAGI). MAGI is used to determine eligibility for ACA subsidies and premium tax credits.

Higher MAGI can result in:

Reduced subsidy amounts
Lost eligibility for premium tax credits
Higher monthly premiums

Note: The loss of subsidies does not mean you will lose your ACA coverage. You can still purchase a plan on the Marketplace, but you may have to pay the full premium without assistance.

Case Study

The post you linked highlights a similar case. The poster’s 11-year-old son is earning income from his YouTube channel. If the son’s income exceeds the tax filing threshold, it could potentially increase the family’s MAGI and impact their ACA eligibility.

Seeking Professional Guidance

To accurately assess the impact on your family’s ACA coverage, it’s essential to seek guidance from a qualified professional, such as:

Tax accountant: Can help you determine your child’s tax liability and how it affects your family’s MAGI.
ACA enrollment navigator: Can provide information about ACA eligibility requirements and assist you with selecting a plan that meets your needs.

Conclusion

While your child’s YouTube income may not automatically disqualify you from ACA coverage, it’s important to understand its potential impact on your eligibility for subsidies and premium tax credits. By working with professionals, you can make informed decisions that protect your family’s healthcare and minimize the financial burden of health insurance costs.