If Your Employer Offers Health Insurance, Can You Still Qualify for Tax Credits on Obamacare?

The Affordable Care Act (ACA) was designed to make health insurance more affordable for low- and middle-income Americans. One way it does this is by offering tax credits to help people pay for health insurance premiums. However, there are some income limits on who is eligible for these tax credits.

If your employer offers health insurance, you may be wondering if you can still qualify for tax credits on Obamacare. The answer is: it depends.

If your employer’s health insurance is affordable, you will not be eligible for tax credits on Obamacare. Affordable health insurance is defined as coverage that costs less than 9.66% of your household income.

However, if your employer’s health insurance is not affordable, you may be eligible for tax credits on Obamacare. This is because the ACA considers employer-sponsored health insurance to be unaffordable if it costs more than 9.66% of your household income.

If you are not sure if your employer’s health insurance is affordable, you can use the ACA Affordability Calculator to find out. The calculator will take into account your income, family size, and the cost of your employer’s health insurance plan.

If you are eligible for tax credits on Obamacare, you can use them to help pay for health insurance premiums through the Health Insurance Marketplace. The Marketplace is a government-run website where you can compare and purchase health insurance plans.

Tax credits are available to people with incomes up to 400% of the federal poverty level (FPL). For 2023, the FPL is $13,590 for an individual and $27,750 for a family of four.

If you are eligible for tax credits, the amount of your credit will depend on your income and the cost of the health insurance plan you choose. The maximum amount of tax credit available for 2023 is $7,500 for an individual and $15,000 for a family of four.

To apply for tax credits on Obamacare, you must complete the Health Insurance Marketplace application. You can apply online, by phone, or through a licensed insurance agent.

If you have any questions about tax credits on Obamacare, you can contact the Health Insurance Marketplace at 1-800-318-2596.