Obamacare: getting subsidies at tax filing time

My income is all over the place from one year to the next because I am a serial entrepreneur — I start businesses all the time.  I’m afraid to buy my health plan on the exchange, for fear I’ll have a good year and then not qualify for the subsidy.  If I buy “off exchange” and have a bad year, can I somehow get the subsidy I should have gotten?

American Dreamer

Dear American Dreamer,

Yes, you can.  When you file your taxes, you will know your income for the year and can get a “refund” on your taxes for the subsidy you previously didn’t claim.  It’s just like over- or under-paying your taxes – it all gets trued up when you file your return.  You might owe the IRS or the IRS might owe you.

Keep that American dream going!

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Linda Riddell

About Linda Riddell

A published author and health policy analyst with 25 years’ experience, Linda Riddell's goal is to alleviate the widespread ailment of not knowing what your health plan can do for you.