ACA Health Insurance: Eligibility for Premium Tax Credits
The Affordable Care Act (ACA) provides financial assistance to individuals and families who qualify for health insurance premium tax credits. These credits are available to help make health insurance more affordable, especially for those with low to moderate incomes.
Understanding the Income Limit for Eligibility
The specific income limit for qualifying for ACA premium tax credits varies each year and is based on the Federal Poverty Level (FPL). For 2023, the income limit for a single person is $55,500, while for a family of four it is $118,500.
Income Considerations
It’s important to note that the income limit is based on your Modified Adjusted Gross Income (MAGI), which includes most types of income, including wages, self-employment income, and investment income.
However, if you enrolled in ACA marketplace coverage predicting your income would be above 100% FPL, you may still be eligible for the premium tax credit if you meet certain criteria.
Income Changes and Eligibility
Your eligibility for premium tax credits is determined based on your income at the time you enroll in health insurance. However, your income may change during the year, and if your income falls below the income limit, you may be eligible for a larger credit.
If your income ends up being below 100% FPL, you will need to complete Form 8962 and check the “No” box on line 6. You can then calculate your applicable credit using the table on the form.
Additional Resources
For more information on ACA health insurance and premium tax credits, you can refer to the following resources:
[Healthcare.gov](https://www.healthcare.gov/)
[IRS](https://www.irs.gov/affordable-care-act/premium-tax-credit)
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