Bigger payouts from unemployment may mean less help with health insurance premiums — and a tax bill.
If your income falls below whatever cap applies to your situation but is higher than you estimated, you may have to repay some of the subsidies you received. Over the income ceiling, and look out.
For some households, those subsidies can be significant. By way of example: Pollitz looked at one zip code in Maryland where the average benchmark premium is roughly $2,200 a month for a family of three — two adults in their 50s and a dependent child. If they made below 400% of the poverty level for their household size — about $87,000 — they could get tax credits worth about $20,000 annually, reducing their monthly premiums to roughly $500.
If you suspect that unemployment — or any other type of unexpected or unplanned money — will push your income up enough to reduce your premium tax credits, it's worth seeing if a contribution to a 401 plan or other qualifying retirement account could lower your income enough to avoid any repayment, said CPA Oscar Vives Ortiz.
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