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Now that the first annual enrollment through the new Health Care Exchanges has ended, it's important to understand how the subsidies that many have received to assist with paying their insurance premiums will be handled by the IRS. Forbes published a good article regarding how fluctuations in income and other life changes, could affect how the subsidy that you receive can change.
If your income changes, or your life circumstances change that can affect household income levels, YOU are required to notify the health insurance marketplace (exchange), so that the subsidy can be adjusted accordingly. If you do not do that, the government will make the adjustments at tax time.
Read more about the way the subsidies work here . . . .
Many have benefitted from the subsidy allocation, but with that benefit comes a responsibility to report any changes that could significantly impact your household income - otherwise there will be tax implications.
