Can Marriage Affect my Affordable Care Act (ACA) Tax Credits?

Do you have health insurance through the ACA Marketplace and are planning to get married? If so, it’s important to understand how marriage can affect your ACA tax credits. In this blog post, we’ll discuss the potential impact of marriage on your ACA tax credits and provide guidance to help you make informed decisions.

Understanding ACA Tax Credits

The ACA, also known as Obamacare, provides tax credits to help individuals and families afford health insurance. These tax credits are based on your income and household size. If you qualify for a tax credit, it will reduce the amount of money you have to pay for your health insurance premiums each month.

How Marriage Affects ACA Tax Credits

Getting married can affect your ACA tax credits in two main ways:

1. Combined Income: When you get married, your household income increases because your spouse’s income is now combined with yours. This may affect your eligibility for ACA tax credits. If your combined income exceeds a certain amount, you may no longer qualify for a tax credit or may receive a smaller tax credit.

2. Employer-Sponsored Health Insurance: If your spouse has employer-sponsored health insurance that is considered affordable, you may no longer be eligible for ACA tax credits. This is because the ACA assumes that individuals with access to affordable employer-sponsored health insurance do not need the assistance provided by tax credits.

What to Do If Marriage Affects Your ACA Tax Credits

If you are planning to get married and are concerned about how it may affect your ACA tax credits, there are a few things you can do:

1. Estimate Your Combined Income: Before getting married, estimate your combined income to determine if you will still qualify for ACA tax credits. You can use the ACA Marketplace calculator to estimate your tax credit amount.

2. Consider Waiting to Get Married: If you are close to the end of the year and are concerned about losing your ACA tax credits, consider waiting until the following year to get married. This will give you more time to plan and adjust your finances if necessary.

3. Explore Other Options: If you no longer qualify for ACA tax credits due to marriage, there may be other options available to help you afford health insurance. You can explore high-deductible health plans (HDHPs), health savings accounts (HSAs), or COBRA coverage through your previous employer.

Conclusion

Marriage can have an impact on your ACA tax credits. By understanding how marriage affects these tax credits, you can make informed decisions that will help you maintain affordable health insurance coverage for yourself and your family. If you have any questions or concerns about how marriage may affect your ACA tax credits, it’s important to seek professional guidance from a licensed health insurance agent.