You might be in for a not-so-nice surprise if you’re one of the millions of Americans who rely on your tax refund and if you’re receiving tax credits to help pay for insurance.
According to USA Today, many taxpayers underestimated their income for 2014 when they applied for health insurance. As your income grows, you don’t qualify for as much tax credit. So if you’re receiving a higher level than you’re eligible for, you’ll have to pay the balance back — via your refund. If you have to pay back even just 10% of your tax credit, your refund could be reduced by several hundred dollars.
If your household income is growing more than you anticipated, you’ll want to get on HeathCare.gov or contact your state insurance exchange to update your account.
Want to talk through your situation? Feel free to give me a call at (864) 836-3136 and we’ll schedule a time to chat.