03/13/2025
To qualify or not qualify?
That's the question
The health insurance marketplace offers subsidies (financial assistance) to those that meet several qualifications but today we are focused on one:
๐๐ง๐๐จ๐ฆ๐ ๐๐๐ฏ๐๐ฅ
Your income must fall between 100% and 400% of the federal poverty level (FPL) for most subsidies. However, some individuals with incomes below 100% FPL may qualify for Medicaid or the Children's Health Insurance Program (CHIP) if available in their state.
Letโs focus on a family (2 adults).
๐ฆ๐๐ฒ๐ฝ ๐ญ: ๐๐ฎ๐น๐ฐ๐๐น๐ฎ๐๐ฒ ๐ ๐๐๐
Start with your total (gross) income (wages, self-employment income, interest, dividends, etc)
Subtract deductions like student loan interest, alimony paid and contributions to a traditional IRA or 401(k).
This gives you your AGI (adjusted gross income) which you can also find on your tax return (Form 1040)
Take your AGI and add back any tax-exempt interest income, Social Security benefits (except Supplemental Income, SSI) and foreign earned income with housing expenses (if applicable).
Family size: count yourself, your spouse and anyone you claim as dependent on your tax return
๐ฆ๐๐ฒ๐ฝ ๐ฎ: ๐๐ฎ๐บ๐ถ๐น๐ ๐ฆ๐ถ๐๐ฒ
Take your AGI and add back any tax-exempt interest income, Social Security benefits (except Supplemental Income, SSI) and foreign-earned income with housing expenses (if applicable).
๐ฆ๐๐ฒ๐ฝ ๐ฏ: ๐๐ป๐ฐ๐ผ๐บ๐ฒ ๐ง๐ต๐ฟ๐ฒ๐๐ต๐ผ๐น๐ฑ
For a family of 2 Adults: 100% FPG is $21,060 and 400% FPG is $84,600
๐๐
๐ฎ๐บ๐ฝ๐น๐ฒ ๐๐ฎ๐น๐ฐ๐๐น๐ฎ๐๐ถ๐ผ๐ป:
$80,000 (gross) - $10,000 (401k contributions) - $6,000 (IRA contributions) + $1,000 (tax-exempt interest income) = $65,000
๐๐น๐ถ๐ด๐ถ๐ฏ๐ถ๐น๐ถ๐๐ ๐๐ต๐ฒ๐ฐ๐ธ:
This familyโs MAGI of $65,000 falls within the FPG range so they could be eligible for subsidies.
Click here to easily see if you qualify: https://www.healthsherpa.com/?_agent_id=patrick-wynne
