State Health Insurance Marketplaces

Find your State's Official Health Insurance Marketplace. Contact your states marketplace now to find out if you qualify for a special enrollment period. You must have coverage that started by May 1st, 2014 to avoid the per-month fee for not having health insurance.

California

Colorado

Connecticut

District of Columbia

Hawaii

Idaho

Kentucky

Maryland

Massachusetts

Minnesota

Nevada

New Mexico

New York

Oregon

Rhode Island

Vermont

Washington

All Other States

healthcare crowdfunding

healthcare crowdfunding

ObamaCare Calculator: Subsidies, Tax Credits, Cost Assistance

How to Calculate Tax Credits and Subsidies for Health Insurance Sold on the Health Insurance Marketplace

Our ObamaCare calculator will help you calculate tax credits and subsidies for health insurance sold on the Health Insurance Marketplace. Use this quick health insurance tax credit guide to help you understand the process or just use Kaiser's calculator for a quick estimate on the cost assistance you and your family may receive through the marketplace. Both individuals and businesses will be able to use online tools through the marketplace that do the leg work for you, however it's good to understand how the process works yourself.

You'll need to understand the Federal Poverty Guidelines to know what type of cost assistance you are eligible for in 2014. You can find the current Federal Poverty Guidelines here.

If you make under 250% of the Federal Poverty Level in 2014 you may also be eligable for other forms of cost assistance like lower out-of-pocket costs. Learn more about ObamaCare subsidies.

How to Calculate Premium Tax Credits and Subsidies

There are a few ways to calculate marketplace tax credits and subsidies.

1. Do it by hand. Below we give you the formula you need to calculate your cost assistance.

2. Use the subsidy calculator provided by Kaiser.

3. Apply at the Health Insurance Marketplace. The Health Insurance Marketplace opened October 1st, 2013!

The ObamaCare Calculator: Calculating subsidies

 

Learn more about how to buy health insurance for 2014.

ObamaCare Quotes by ObamaCareFacts.com



Below is some helpful information from a free guide offered by www.zanebenefits.com

Individual Health Insurance Tax Credits

The amount of your health insurance tax credit is based on the premium for the second lowest cost “silver plan” in your state’s individual Health Insurance Marketplace.

The amount of the tax credit varies with income such that the premium you would have to pay for the second lowest cost silver plan is capped as a percentage of income (adjusted for household size), as follows:

Income Level Premium as a Percent of Income

calcuate tax credits health insurance

How to Calculate Your Health Insurance Tax Credit

Step 1- Calculate Your Modified Adjusted Gross Income (MAGI)

Step 2 - Use Your MAGI and Household Size to Determine if You are Eligible for a Tax credit

Step 1 - Calculate Your Modified Adjusted Gross Income (MAGI)

How to Calculate Your Health Insurance Tax Credit

Step 1- Calculate Your Modified Adjusted Gross Income (MAGI)

Step 2 - Use Your MAGI and Household Size to Determine if You are Eligible for a Tax credit

Step 1 - Calculate Your Modified Adjusted Gross Income (MAGI)

Why Does MAGI Matter?

Modified Adjusted Gross Income is a measure used by the IRS to determine if a taxpayer is eligible to use certain deductions, credits, or retirement plans. “Modified Adjusted Gross Income” (not "Adjusted Gross Income") will be used in determining eligibility for your health insurance tax credits. The IRS phases out the tax credit as your income increases. By adding MAGI factors back to your AGI, the IRS determines how much you really earned. Beginning in 2014, your MAGI determines whether you will be eligible for premium tax credits on the new Health Insurance Marketplaces

What is Adjusted Gross Income?

Generally, your Adjusted Gross Income (AGI) is your household's income less various adjustments. Adjusted Gross Income is calculated before the itemized or standard deductions, exemptions and credits are taken into account.

What is Modified Adjusted Gross Income?

Generally, your Modified Adjusted Gross Income (MAGI) is the total of your house hold's Adjusted Gross Income and any tax-exempt interest income you may have (these are the amounts on lines 37 and 8b of IRS from 1040).

How to Calculate Your Gross Income (GI)

Your gross income is the money you earned through wages, interests, dividends, rental and royalty income, capital gains, business income, farm income, unemployment and alimony. This is the basis for your AGI calculation.

Gross income includes salary, interest earned, income from investments and basically any income you made through business, trade or investments.

How to Calculate Your Adjusted Gross Income (AGI)

Once you have gross income, you "adjust" it to calculate your AGI. You make adjustments by subtracting qualified deductions from your gross income.

Adjustments can include items like some contributions to IRAs, moving expenses, alimony paid, self-employment taxes, and student loan interest.

There are many free AGI calculators available online.

How to Calculate Your Modified Adjusted Gross Income (MAGI)

Once you have adjusted gross income, you "modify" it to calculate your MAGI.12 THE EMPLOYEE’S GUIDE TO HEALTH CARE REFORM’S TAX CREDITSS specifically, Modified Adjusted Gross Income (MAGI) is calculated by adding back certain items to your Adjusted Gross Income including:

• Deductions for IRA contributions.

• Deductions for student loan interest or tuition.

• Excluded foreign income.

• Interest from EE (employee) savings bonds used to pay higher education expenses.

• Employer-paid adoption expenses.

• For most people, MAGI is the same as AGI.

Step 2 - Use Your MAGI and Household Size to Determine if You are Eligible for a Tax Credit

You can use the following table to figure out if you would be eligible for a tax credit based on your 2013 income.

2013 Federal Poverty Line (FPL) Guidelines

federal poverty level guidelines

If you are eligible for a tax credit, an online calculator will help you estimate your actual tax credit. This estimate will give you an idea of how much health insurance will cost you and your family in 2014. Insurance rates for 2014 have not yet been finalized so keep in mind that, once you are ready to purchase a health plan, the actual cost will likely change from this estimate.