Question: If the subsidy is really an “advanced tax credit” how does a low income person (no income tax paid) pay the premiums? From your site: Estimated monthly silver plan premium (without subsidy) $1,369. Estimated tax credit from the government $1,280 Your estimated monthly silver plan premium $89. I cannot pay $1,369 and I am on early Social Security so I do not pay income taxes. Please help! Several of my friends are in the same situation and we all think we have to pay a penalty for no insurance and wait until we turn 65 for Medicare.
Answer: You will only pay the net premium after the “tax credit” which is $89 per month. Furthermore, the IRS only recovers tax credits that have been overpaid. In your case there would not have been an overpayment (that is, a person received more tax credit than their income justified) so in your case no tax would be due, Hope this helps you to sleep better.