Subsidies & Tax Credits Guide

Subsidies and Tax Credits: Who Qualifies

How premium tax credits work

Marketplace subsidies cap what you pay for a benchmark plan as a percentage of your household income. The credit applies instantly to your monthly premium, and many households pay under $100 a month for real coverage. Some pay nothing.

What counts as income

Eligibility uses your household's modified adjusted gross income for the coverage year: wages, self-employment profit, and certain other income. Estimating this well matters, because underestimating can mean repaying credits at tax time.

Cost-sharing reductions: the quiet second subsidy

If your income falls in the qualifying range and you choose a silver plan, cost-sharing reductions shrink your deductible and copays too. This is one of the most valuable and least known features in the marketplace, and we always check whether you qualify.