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IRS and Marketplace insurance question

By Terry Savage on August 06, 2022 | Insurance & Annuities

When my COBRA ended, I took out insurance via the Marketplace in February 2022. I estimated that my earnings for this year would be $25000. Then I quit my part time job in June to care for my spouse. What will happen if I don’t meet that $25K amount? Should I make up the difference by taking a withdrawal from my 401K? (I am over 60). My spouse will begin Social Security in 2023 or 2024.

Terry Says

Don’t worry about over-estimating your income – that’s not nearly as bad as UNDER estimating you income! But you could perhaps get a less expensive plan (a larger subsidy) so it’s important that you report the change immediately.

Use this link to do that: https://www.healthcare.gov/reporting-changes/how-to-report-changes/

And honestly, if you now have NO income and are living on savings, check out your state Medicaid plan or other health insurance support that are based on income. As well, you might be eligible for food benefits and utility subsidies. All of that will help replace your lost income.

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