Why Do Tax Credits Seem Low?
My daughter and her husband live in Virginia. She is still in college getting a Doctorate degree. She does get a stippen from the college of $13,000 per year. Her husband is a Photographer and makes about $28,000 gross per year. They both just turned 26. They have applied on the Marketplace and only recieved a $2.00 tax credit. The plans we looked at on the Marketplace were unaffordable with such a low credit. Is there something that we are missing? Why can’t young adults who are trying to make it on their own, get more help than this?
When you apply for the Marketplace your cost assistance (including tax credits) is estimated based on the information you provide. They should check their application again. Deductions they will claim should be factored into the income they report, this will help to increase their cost assistance eligibility. Also double check they are taking the full tax credit "in advance".