Overestimating Your Income for Obamacare: What Happens?
When you apply for health insurance through the Health Insurance Marketplace, you must estimate your annual income for the year. This estimate is used to determine your eligibility for premium subsidies. If you overestimate your income, you may end up paying more for your health insurance than you should.
The Importance of Accurate Income Estimation
It is important to provide an accurate estimate of your income when applying for health insurance through the Marketplace. If you underestimate your income, you may not qualify for premium subsidies, which could result in you paying more for your health insurance. If you overestimate your income, you may receive too much in premium subsidies, which could require you to repay the excess when you file your taxes.
What Happens if I Overestimate My Income?
If you overestimate your income when applying for health insurance, you will likely receive a smaller premium subsidy than you would have if you had provided an accurate estimate. This means that you may end up paying more for your health insurance each month.
How to Adjust Your Income Estimate
If you realize that you have overestimated your income after applying for health insurance, you can adjust your estimate by contacting the Marketplace. You can do this online, by phone, or by mail.
Reconciling Your Premium Subsidy
At the end of the year, you will need to reconcile your premium subsidy by filing an IRS Form 8962. This form will calculate your actual premium tax credit based on your actual income for the year. If you received too much in premium subsidies, you will need to repay the excess when you file your taxes. If you did not receive enough in premium subsidies, you will receive a refund.
Conclusion
It is important to provide an accurate estimate of your income when applying for health insurance through the Marketplace. If you overestimate your income, you may end up paying more for your health insurance than you should. If you realize that you have overestimated your income, you can adjust your estimate by contacting the Marketplace.
Question? or Need a Free Quote?
Contact Us
Reach out to us for free expert insurance advice and solutions. We will help you solve ACA (Obamacare) related questions and problems. Will contact you within 24 hours of receiving your message.