Question: My gross income for myself and my daughter falls in the range of 200-250% of the FPL. AFter exemptions and deductions I pay no Federal Income Tax. Therefore, a tax credit will not help me. Can I get another type of subsidy?
Answer: While the premium subsidy is called an “advanced tax credit”, it works differently than you are assuming. For example, if your family’s insurance premium before the subsidy is $1000 and you qualify for a subsidy or “advanced tax credit” of $700. The federal government sends that tax credit directly to your insurance company and you pay only the balance of $300 each month. It’s called an “advance” because if the government overpays for some reason, for example your income goes up during the year, you will pay back some of that advanced tax credit when you file your taxes for that year.