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In November and December, many families choose their health insurance from the Marketplace (HealthCare.gov or your state's Market). In addition to protecting your family, your choice may increase your refund or make you owe money when you file taxes. At La Familia Multiservices, we guide you so that the plan and tax credits work for you.
- This is Open Enrollment season in most states (usually from November 1 to mid-January; to start coverage on January 1, you usually need to enroll before mid-December).
- Financial aid (Premium Tax Credit) is still available and, by law, expanded support is maintained until the year of coverage 2025. That means more families qualify and pay less per month.
- More than 21 million people chose Marketplace coverage for 2024, the highest number on record, showing that people are indeed finding affordable options. Reference: HHS/CMS.
- About 9 out of 10 people who sign up get help paying their monthly premium (tax credits). Reference: KFF/CMS.
- If you receive credit in advance and your actual income ends up being higher than estimated, you may have to repay some of the credit when you file your return (Form 8962). Reference: IRS.
- Although there is no federal penalty for not having insurance, some states do apply penalties (for example, CA, DC, MA, NJ, RI). Reference: KFF.
- The Premium Tax Credit (PTC): This is government money to lower your monthly payment. If you receive it in advance (APTC), when you do your taxes, we “reconcile” what they gave you vs. what you really owed based on your final income.
- What can happen:
- If your actual income was lower, you may receive more credit for your refund.
- If your real income was higher, you may owe part of the credit.
- How to avoid overpaying:
- Estimate your income for the year well. If they go up or down, update your request in the Marketplace as soon as possible.
- Save your Form 1095-A (it comes to you from the Marketplace). Without that document, the IRS may delay your refund.
- File Form 8962 with your return to reconcile properly.
- Sign up as soon as possible during Open Enrollment. In most states:
- To start on January 1, there is usually a deadline in mid-December.
- The total period usually extends to mid-January.
- Some states that manage their own Market may have different dates. If you're not sure, we'll help you verify.
- Review doctors and medicines: Make sure your doctor is in the network and your prescriptions are covered.
- Look at the total cost, not just the premium: Consider deductible, co-payments and maximum annual expenses.
- Check for extra income savings: There are plans with cost-sharing reductions if you qualify (you pay less when you use the plan).
- Changes in your life: Marriage, baby, change of job or income can change your eligibility and credits.
Documents we help you gather
- Estimated household income (payslips, statements, business documents if you are independent).
- Information for everyone in the tax household (names, dates of birth, SSN, or acceptable documents).
- Doctors/medicine preferences and monthly budget.
How we support you at La Familia Multiservices
- We help you compare plans and sign up correctly.
- We calculate your income realistically to minimize credit refunds during tax season.
- Tax preparation with reconciliation of the Premium Tax Credit (Form 8962) and management of your 1095-A.
- Advice in Spanish, clear and without technicalities.
Call us today or schedule at www.lafamiliamultiservices.com to secure your coverage and plan your taxes before the deadlines. A small adjustment now can save you from overpaying in April.
References:
- Department of Health and Human Services (HHS) /Centers for Medicare and Medicaid Services (CMS). “2024 Marketplace Open Enrollment hits record enrollment (more than 21 million).” https://www.hhs.gov/about/news/2024/01/24/biden-harris-administration-announces-record-breaking-21-3-million-people-selected-aca-marketplace-coverage-during-2024-open-enrollment-period.html
- Kaiser Family Foundation (KFF). “Nearly 9 in 10 Marketplace enrolled receive financial assistance.” CMS data analysis. https://www.kff.org/health-reform/ (see sections on grants and enrollment data)
- GO. Premium Tax Credit (PTC) and reconciliation (Form 8962). https://www.irs.gov/credits-deductions/individuals/premium-tax-credit
- HealthCare.gov (Dates and Eligibility). https://www.healthcare.gov/quick-guide/dates-and-deadlines/
- KFF. State coverage mandates and penalties. https://www.kff.org/health-reform/issue-brief/state-individual-mandate-requirements-and-penalties/
- KFF. Extension of improved subsidies until 2025 by the Inflation Reduction Act. https://www.kff.org/health-reform/issue-brief/how-the-arp-and-ira-expand-subsidies/
Note: Exact dates may vary depending on your state and year of coverage. The information is general and may change; confirm with your state's Marketplace or contact us for a personalized review.
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