2015 marks the second year of the mandatory health coverage. Hopefully you have had health insurance throughout this and past year and if you received subsidies to your plan from the government (premium tax credit), it is time to report it. Remember that it is the income you earned in 2014 that will ultimately determine the government subsidy at different income level and the maximum income you can generate to qualify for government assistance.
If you understated your income at the time of getting your health insurance, you may be required to pay back all or portion of the subsidies that helped you pay for it. Many life events can also alter the level at which you don’t qualify for a subsidy i.e. you could have received a raise at work or your filing status has changed. Little can be done at this time to make adjustments to last year’s income and expenditure, but you can at least prepare yourself by running a quick test and know what to expect. It will also help determine whether or not you are exempt from the coverage. To complete the test you will need the following information:
- filing status (as of the end of 2014)
- your dependents
- gross income – yours and your dependents who are required to file a tax return
The amount of premium tax credit is based on federal poverty line (FPL) amount established for that year. Individuals whose income falls between 100% and 400% of FPL can qualify for premium tax credit. Here is the table of those amounts for 2014: