The ACA health insurance options vary based on estimated income for the year. Specifically, the silver plans can have an "Extra Savings" which includes in a lower deductible and out-of-pocket maximum.
For example: * Estimated income of $20,000 a year qualifies for tax credits and has the "Extra Savings". The out-of-pocket maximum is $1,500 and deductible is $150. * Estimated income of $60,000 a year which does not qualify for credits has a out-of-pocket maximum of $9,500 and deductible is $2,500.
I know if you receive the tax credits and end up making more you pay them back the following year during taxes.
What happens if you take a silver plan with the "Extra Savings" and then end up making more money? Do you owe any money in addition to paying back the tax credits you received?
My reason for asking is I am unemployed but actively applying for work. I am unsure when I will land a job but depending on when I do the difference in income for the year could be between $20,000 and $60,000+. My job could also offer insurance. I don't know if it's better for me to sign up to receive the tax credits with lower deductible incase I don't find a job anytime soon.
Thank you for helping me navigate this market.
submitted by /u/PaulyShoreisAstapler