The Obamacare Subsidy in 2020 can be difficult to understand. That’s where The Mair Agency comes in. We’re here to help you figure out what subsidy you’re eligible for. You can also count on us to assist you in finding the ideal health insurance plan for you and your family.
So, what exactly is a subsidy? A subsidy is essentially an advanced tax credit. You may be owed one because your tax return failed to match up with the income you estimated on your application.
When you apply each year, it is your job to estimate your Modified Adjusted Gross Income (MAGI) for that coming year. The Federal Government’s Poverty Level (FPL) will be used to calculate the subsidy you’re offered. If your income falls between 100% and 400% of the FPL, you qualify for a subsidy.
In the event you estimated your income would be lower than it actually was, you may have been offered too high of subsidy, which you are now responsible for paying back. On the contrary, if your income was less than you estimated it would be, the government may owe you some subsidy. Basically, if your final MAGI falls below or above the FPL, you should not have received an advance credit.
There are a variety of reasons your final income may be different than what you thought it would be. Maybe you lost your job. Or, maybe you received a raise or collected more money in overtime pay. You may have also made some money from investments you didn’t initially consider or earned more in capital gains. In addition, you may have made some unexpected money from an inheritance or lottery winnings. Adding or removing dependents from your tax return may have made a difference as well.
You should understand that if you do not file and reconcile your tax return every year, you will not be eligible for a subsidy. In most cases, audits are performed after the first quarter so if your return has not been received, you can expect your subsidy to be dropped around April of the current year.
This chart can help you figure out whether your household size and income will qualify you for a subsidy in 2020. These numbers are based on the 2019 federal poverty guidelines and will be used for all 2020 plans since open enrollment for 2020 take place in 2019.
| Persons in Household | 100% FPL | 138% FPL | 250% FPL | 400% FPL |
| 1 | $12,060 | $16,642 | $30,150 | $48,240 |
| 2 | $16,240 | $22,411 | $40,600 | $64,960 |
| 3 | $20,420 | $28,179 | $51,050 | $81,680 |
| 4 | $24,600 | $33,948 | $61,500 | $98,400 |
| 5 | $28,780 | $39,716 | $71,950 | $115,120 |
| 6 | $32,960 | $45,484 | $82,400 | $131,840 |
| 7 | $37,140 | $51,253 | $92,850 | $148,560 |
| 8 | $41,320 | $57,021 | $103,300 | $165,280 |
| 9+ | If your household is larger than 8 people, add $4,180 for each additional person. | |||