Obamacare Subsidies: Underestimated Income? What You Owe Back
When you applied for Obamacare premium subsidies for a 2014 plan you estimated what your income would be, but what happens if you underestimated and actually made more than you claimed?
Underestimated Income for ACA Subsidies
The Affordable Care Act, commonly known as Obamacare, offers premium subsidies if your income falls within a certain range, but if you underestimated your income you will owe some or all of your subsidies back. Good news is you may not have to pay it all back because if your income falls below $45,960 the government puts a cap on what you would owe back even if you owe more. The chart below explains what you will owe back if you underestimated your income:
| Actual Income for Individual | Individual Subsidy Payback | Actual Income for Family of Four | Family Subsidy Payback |
| Under $22,980 | capped at $300 | Under $47,100 | capped at $600 |
| $22,980 – $34,470 | capped at $750 | $47,100 - $70,650 | capped at $1,500 |
| $34,470-$45,960 | capped at $1,250 | $70,650 – $94,200 | capped at $2,500 |
| Over $45,961 | Entire amount of subsidy | Over $94,201 | Entire amount of subsidy |
For help learning if you qualify for premium subsidies and cost-sharing subsidies call the number above. For any other questions about the Bronze, Silver, Gold, and Platinum exchange plans contact Medicoverage or click here to get an exchange quote.
Comments and Questions
Click to leave a CommentComment from kim on February 07, 2016
i earned less then 2000.00 last year. i had max Obma care (515 per mo) do i have to repay?
MEDICOVERAGE AGENT RESPONSE
Kim,
I’m not clear about your question. However, there are a few things to consider: 1) If you made $2,000 for the entire year, do you qualify for Medicaid, 2) If you received subsidies but you qualified for Medicaid or did not qualify for subsidies/Medicaid, you may owe back money, 3) If you made more than the amount you claimed, you may owe back some or all of the money.
Please comment again or call 800-930-7956 to clarify your question.
-Michelle from http://www.medicoverage.com/
Comment from Becky on August 19, 2015
Will the table be the same for 2015? I am an individual with Marketplace insurance and may earn more than I estimated for 2015. As long as I earn less than $22,980….than I am capped at $300 for repayment? Thanks!
MEDICOVERAGE AGENT RESPONSE
Becky,
Thank you for your question. The amount for 2015 has not yet been released, so you could owe more than the 2014 cap. Also, remember, if you have a pay increase during the year you are required to report it to your exchange. Hope this helps.
-Amy from http://www.medicoverage.com/
Comment from Tom on March 09, 2015
What are repayment caps for family of 2?
MEDICOVERAGE AGENT RESPONSE
Tom,
It appears your repayment cap would be the same as a family of four; however, with all tax questions we suggest you contact your tax expert directly.
-Amy www.medicoverage.com