Are you a self-employed mom and paying too much on your health insurance? If yes, I’ve good news! Health insurance is typically a tax deductible for those who are self-employed. This means that health plan premiums can be more affordable than you might think. Consult your accountant of course.
Since we have to juggle several important things (career, family, health, finances, etc.) as moms, I think it’s beneficial that you learn the things I know about saving money on health insurance. I want to share more information about premium tax credit because this can definitely help lower your monthly health insurance bills.
Your PTC as a self-employed mom:
Premium Tax Credit (PTC) is a refundable credit that helps eligible individuals and families lower their monthly health insurance payments (called “premiums”) when they enroll in a plan through the Health Insurance Marketplace. As a self-employed mom, you may qualify for a tax credit and may opt to apply some or all of it to your health insurance’s monthly premium payment.
What will make you eligible for premium tax credit?
- Your household income falls at a certain range
- You have legal immigration status in the U.S.
- You must enroll through the Health Insurance Marketplace
- You must NOT have other creditable health insurance through Medicaid, Employer, Veteran’s Insurance,
- TRICARE or Medicare
- You cannot be claimed as a dependent by another person
- You do not file a tax return as Married Filing Separately, if you are legally married
- You are a permanent resident of your state
Note: You have to enroll through the Health Insurance Marketplace in order for you to use your tax credits. That means, any direct enrollment with an insurance carrier WON’T qualify you to receive any premium tax credit or financial assistance. You may get free local help from a trusted health insurance broker to lower your costs.
You need to file your taxes every year.
You have to file federal income tax return to get premium tax credit. In addition, filing your tax return can also help you in certain scenarios, like applying for a loan or for government benefits, so it’s really important that we don’t fail to do this annually. Moreover, it can prevent you from facing penalties and interest fees owed to the IRS. (Tip: You can file online for free using TurboTax or MyFreeTaxes.)
Savings, savings, savings!
More savings means more financial stability for us moms and for the entire family. Computing and earning tax credits can be confusing, but there are always people who are available to assist you at no additional cost.
We have a lot of things to look after as moms, and health insurance should not be one of the hard ones! Go ahead and see if you qualify for tax credits today.