Many people enroll in ACA health insurance and then forget about it until tax season arrives. But if your income or household situation changes during the year, failing to update your information could lead to unexpected costs when it’s time to file your taxes.
ACA premiums are based on one’s annual adjusted gross income for the calendar year in which you’re applying. And at the end of the year, when your actual income is calculated, this could cause a surprise repayment at the end of the year if your estimation was off.
My name is Bobby Dean with the MBhealth Insurance Agency located here in St. Louis, Missouri. Today we’re going to be talking about the ACA and why a mid-year review is vital.
Income Changes That Can Affect Your ACA Premium Subsidies
A significant change in income should trigger this mid-year review. This would include if you’ve:
- Gotten a new job
- Gotten a raise
- Gotten a bonus at work
- Lost your job
These are all times when you should call somebody like myself to review kind of where we stand on our premium and if this has any implications as to a potential repayment at the end of the year.
Life Events That Require an ACA Coverage Review
Life events also call for a review if you’ve:
- Had a baby
- Gotten married
- Adopted a child
- Moved (within the state or to a new state)
These are all events that could happen throughout the year that would trigger what we refer to as a review follow-up.
How a Mid-Year ACA Review Helps You Prepare for Tax Season
A review follow-up is when we go through and check your premiums: what it is currently and see what adjustments we need to make or what preparation we need to take to prepare us for tax time for the following year.
Last thing we want is a big surprise tax bill at the end. The more “in the know” that you are and the more prepared you are, the less of a surprise that that’s going to be. If we catch it early, we can offset (or prepare to offset) what that repayment looks like.
Need Help Updating Your ACA Coverage? Contact MBhealth
If you need help or you’ve gone through a life changing event, had a job change or an income adjustment, give us a call. We here at MBHealth would love to help you. Our phone number is 314-544-5400 and our website is www.mbhealth.com. Don’t go at it alone. Don’t be surprised by your taxes. Give us a call and let us figure it out.
