My wife started paying about $75/month for health coverage March of 2014. The premium was $222/month, and the premium tax credit was $152/month…..thus she was responsible for the $75 every month. FYI…no other insurance, e.g. employer coverage, was available, and she qualified for this reduced plan based on her lower income.
Now, here’s our question: We got married Sept. 13th of last year. Since I was not working at that time, our combined income shouldn’t have changed all that much (unless they counted my $2,000 monthly unemployment). Yet now, after entering Megan’s 1095-A from last year, I’m being told that she doesn’t qualify for ANY tax credit to help pay for 2014’s health plan. It doesn’t make sense. After entering the 1095-A for my wife, our estimated refund went from $2,500 down to around $500.
Is this right? Should a mid-year life-change such as marriage, affect the ENTIRE year, instead of a portion of the year? If not, I don’t understand why we have to pay back all of her tax credits.