Tax Credits to lower health insurance premium costs are generally available to anyone making 100% – 400% of the Federal Poverty Level. The 400% cut-off creates a “Subsidy Cliff” where families can lose all assistance by going just over the limit. This can effectively mean losing thousands in assistance by making only dollars more in income.

To give relief, the 400% Federal Poverty Level (FPL) Subsidy Cliff was temporarily removed by the American Rescue Plan and extended through 2025 by the Inflation Reduction Act.

Through 2025, if you make over 400% FPL tax credits gradually decrease as your taxable income raises.