ACA Premium Tax Credits (subsidies) can reduce monthly health insurance premiums by hundreds of dollars per month for qualifying self-employed professionals.
How Subsidies Are Calculated
Subsidies are calculated on a sliding scale based on your Modified Adjusted Gross Income (MAGI) relative to the Federal Poverty Level (FPL) and the cost of the benchmark Silver plan in your geographic rating area.
Tips for Freelancers with Variable Income
- Estimate your net profit conservatively to avoid large repayments at tax time.
- Contribute to an SEP-IRA or Solo 401(k) to lower your MAGI and increase your subsidy eligibility.
- Update your income on Healthcare.gov if your client revenue changes significantly mid-year.