Hi, this is Lou with insurancemedics.com calling from beautiful Hollywood, Florida. Today’s question is, do I have to pay back, or in what circumstances, do I have to pay back my health insurance subsidy or tax credit?
First, I think this is really a tax question for tax professionals, but I’ll do my best to try to explain how the health insurance tax credit, how you qualify for it and in what circumstance you have to pay it back. So as long as your income stays below 400% of the federal poverty level, you will not have to pay back your entire tax credit if you over-report your income. If you over-report your income and you are reporting more than 400% of the federal poverty line, in that circumstance, you would have to pay back the entire tax credit or the entire subsidy. Once again, this is a question really for tax professionals, but I wanted to give you an idea of what to expect and what repercussions there are for over-reporting on your insurance. Or under reporting on your insurance and claiming more on your taxes. Thank you and have a great day.