Tax Credit Tools

Premium Tax Credit Estimator Tools for Customers Who Have an Income Change During the Year

Depending on how much you earn, you could get financial help with the cost of insurance. Tax credits help lower the cost of your health insurance premium payments each month. Tax credit amounts are based on your income and are set by the federal government. If you’re eligible for tax credits, you can choose to use some or all of your tax credit to lower your monthly premium payment, or wait to get all of your tax credit when you file your federal income tax return. You can change the amount of tax credits you use monthly through your Washington Healthplanfinder account.

Washington Healthplanfinder has developed a tool to help you estimate your premium tax credit. If your household income changes during the year providing an estimate of the changes to the premium tax credit amount. This tool does not calculate the actual premium tax credit, your eligibility to receive the tax credit, or provide legal, tax or accounting advice.

If you need help using this tool, please contact the Exchange Customer Support Center (Phone: 1-855-923-4633 TTY: 1-855-627-9604). Help is available in 175 languages and language and disability accommodations are provided at no cost. Free help from local experts is accessible via the WAPlanfinder Mobile App or by visiting: https://www.wahealthplanfinder.org/_content/find-expert-advice.html.

Premium Tax Credit Estimator Tool

Additional information and resources:

 


Information for Customers Offered a Health Reimbursement Arrangement by their Employer

A Health Reimbursement Arrangements (HRA) is an employee health benefit that reimburses you for your health care expenses (and sometimes your family members’ health care expenses) up to a certain dollar amount. Your employer is required to send you information that explains the terms of the HRA.

Two types of HRAs can be used to help pay for your individual health insurance coverage but may reduce or eliminate your premium tax credit for coverage purchased through Washington Healthplanfinder.

Whether your eligibility for premium tax credits is impacted is determined by whether your HRA is considered affordable.


Premium Tax Credit Estimator Tool

Many people receive a tax credit to help pay health insurance premiums. This tool helps you estimate your tax credit change when you have changes during the year. Most people opt to apply an estimated tax credit to their health insurance bill each month to lower the monthly cost rather than get the tax credit when they file their taxes the next year. If you apply the credit monthly, you need to make sure to report changes that impact your tax credit. Note: this tool only provides an estimate – it is not a substitute for legal, tax, or accounting advice.

Step 1: Gather the information you need

You will need to provide:

  • An estimate of your annual household income for the current year
  • Your family size (includes you, your spouse and your dependents)
  • The age of your household members
  • The county your household lives in
  • The number of months you have been enrolled in qualified health plan coverage, and the amount of tax credit you have already received
  • The number of months you expect to be enrolled during the rest of the current year, and the amount of tax credit you expect to receive

Step 2: Enter your household information

Tip: If your annual income fluctuates or is uncertain, enter your best guess. When reporting your income in Washington Healthplanfinder, if you over-estimate your income, any tax credit money owed to you will be accounted for when you file your taxes next year. If you under-estimate your income, any tax credit money you owe back to the federal government will be accounted for when you file your taxes next year.

Step 3: Enter your coverage information

Tip: The number of months you report do not have to be continuous – if as of June (1 month) you were covered from January through March (3 total months), and again in May (1 month), you would enter a total of 5 months.

The monthly amount you received can be located in your "Eligibility Results" correspondence available in your Washington Healthplanfinder "Message Center". Multiply the monthly tax credit amount by the number of months you were enrolled and enter that amount.

If you need help please contact Customer Support (Phone: 1-855-923-4633 TTY: 1-855-627-9604) and one of our customer support representatives can assist you. Help is available in 175 languages and language and disability accommodations are provided at no cost

Your monthly tax credit amount can be located in your Healthplanfinder account. From your account dashboard select View Current Eligibility Results from Account navigation menu.

How household information is used to estimate your tax credit
Percentage of the Federal Poverty Level (FPL)
Income eligible for tax credit
Applicable contribution percent
Benchmark plan
Estimated annual benchmark plan premium
Annual contribution amount
Annual premium tax credit

Step 4: Estimated Premium Tax Credit

*Note: If your income is less that 400%FPL, the amount you need to repay is limited
Repayment limits can be found in IRS Form 8962 Instructions, Table 5. Repayment Limitation

Tip: When your premium tax credit is less than your advance credit payments, it can result in additional tax liability to you. To help prevent that, notify the Exchange when your income changes. You may have a tax refund or balance due, even if you report all your changes.

Step 5: Adjusting the amount of premium tax credit you receive

You can choose to lower the amount of monthly tax credits you receive if you are concerned about a potential repayment.

This calculator only provides an estimate. It does not, and is not intended to, provide legal, tax or accounting advice. For tax advice applicable to your particular situation, you should consult a professional tax advisor.