How to Project Income for ACA if Income Varies?
My income varies from week to week and it is impossible to know how much my annual income will be. I have reported 22, 500 annual income. If I only make 16, 000 dollars then I have over paid for my insurance premiums and the subsidy should have been greater also. Will I be reimbursed for over payment I made for the premiums and the subsidy shortage?
If your income varies from week-to-week you'll make a reasonable prediction of your annual income, which you can base on last year. You should consider taking only part of the tax credit up front and then adjusting the net tax credit on the 8962 - Premium tax credit form at the end of the year.
When you adjust your tax credit you will be reimbursed for tax credits or will owe back advanced payments of tax credits up to the repayment limit.
We suggest predicting low and getting an HSA eligible marketplace silver plan. This will ensure you the most flexibility for adjusting your cost assistance levels throughout the year and adjusting your tax credit on your next years taxes.
Learn more about why Silver plans are a smart choice.