If I am unemployed how do I answer the question “do I plan to file federal taxes”?


When you project your income for ObamaCare's cost assistance you need to attest to the amount of income you expect to claim and whether or not you plan to file taxes. If you expect to gain employment you'll want to estimate income with that in mind. You won't have to file taxes if your income is below the filing threshold, but you may choose to anyway. Thus, if you know you will file federal taxes then you should answer "yes" to the aforementioned question. When you are unemployed and don't know if you'll gain employment you may want to take part or none of the Advanced tax credits up front. This will help avoid repaying tax credits if your income is higher than expected.

Learn more about tax credit repayment limits.

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Pam on

Answer Rating:

Don’t understand what to do. I have filled for disability and I know that I will not work I am unable to work and I have no income. What do I need to do I need insurance and I have medical needs I have to pay for out of my pocket, I do not qualify for medicare in the state of Alabama.

ObamaCareFacts.com on

Alabama did not expand Medicaid and if you will make less than 100% of the poverty level for this year than you don’t qualify for cost assistance. Millions of Americans around the country are finding themselves with no coverage options in states that refused to expand Medicaid under the Affordable Care Act. In these states people may still qualify for CHIP if they have kids, can always use a public hospital in an emergency, and can coordinate with some local clinics that may offer certain services for free to those without any type of coverage (try asking workers at local hospitals and local assistance programs).

Nilda on

I estimated my income for the year at $12,000. But, was unemployed except for $615 from one small job. I didn’t collect unemployment nor sign up for Medicaid and just lived off my savings. I have a 1095-A with an annual total of $4680 and a 1099-INT with a total of $26. My income was so small, I don’t know if I need to fill out a 1040 or just the 8962 and send a check for the whole $4680? Do I deduct the $19 in taxes I paid? These numbers are so small I don’t know what to do.
Thank you for your time.

Erin on

If I am understanding this correctly, you estimated your income to be $12,000 for the year, but it ended up being far lower. Individual tax filers with incomes below $10,400 are not required to file a return, but you can. You’d likely get any withheld taxes back and you may also qualify for additional premium tax credits. You aren’t penalized for ending up below the Marketplace eligibility threshold (100% of the federal poverty level).