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?
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!