Can I Get an Obamacare Subsidy Retroactively?

If you’re self-employed, predicting your yearly income can be challenging. This can make it difficult to determine if you qualify for an Affordable Care Act (ACA) subsidy, which can help reduce the cost of health insurance.

What is an ACA Subsidy?

An ACA subsidy, also known as a premium tax credit, is a financial assistance program that helps people with low to moderate incomes afford health insurance. The subsidy is paid directly to your health insurance company to lower your monthly premiums.

Can I Apply for a Subsidy Retroactively?

Unfortunately, you cannot retroactively apply for an ACA subsidy. The deadline to apply for a subsidy for a given year is the tax filing deadline for that year (typically April 15th). This means that if you did not apply for a subsidy when you enrolled in health insurance, you will not be able to get it retroactively.

What if I Qualify for a Subsidy but Did Not Apply?

If you qualify for an ACA subsidy but did not apply for it during enrollment, you can still claim the subsidy when you file your taxes. When you file your tax return, you will need to complete the Form 8962, Premium Tax Credit. This form will calculate the amount of the subsidy you are eligible for and reduce your tax liability accordingly.

How Do I Estimate My Income for a Subsidy?

If you are self-employed and don’t know your exact income, you can estimate it based on your previous year’s income or your projected income for the current year. You can also make estimated tax payments throughout the year to ensure that you receive the correct amount of subsidy.

What Happens if I Estimate My Income Incorrectly?

If you estimate your income incorrectly, you may receive either too much or too little subsidy. If you receive too much subsidy, you will need to repay the excess amount when you file your taxes. If you receive too little subsidy, you will get a credit on your tax return.

Seek Help from a Licensed Agent

If you’re struggling to estimate your income or have other questions about ACA subsidies, it’s recommended to seek help from a licensed insurance agent. They can help you determine your eligibility for a subsidy and guide you through the application process.