When your application asks how much you currently earn, enter what you are making right now. Then, estimate what you think you’ll earn by the end of the year and enter that as your expected yearly income.
How income changes can affect your health coverage
If your income changes during the year, tell the Health Connector as soon as you can. Your income helps decide how much help you get paying for health insurance. When your income goes up or down, your costs and the plans you qualify for can change too.
Reporting changes right away keeps your help accurate. It also lowers the chance of a surprise at tax time.
First, it is important to understand certain information about savings and programs:
- Advance Premium Tax Credit (APTC): Money from the federal government that lowers what you pay each month for a health plan.
- ConnectorCare: A type of Health Connector plan with lower monthly costs and lower out-of-pocket costs. It’s for people whose income falls in a certain range.
- MassHealth: Health coverage for people with lower incomes or who meet other qualifying requirements. More information →
- FPL (Federal Poverty Level): A yearly income guideline the government uses to decide who qualifies for help. Your income is compared to the FPL to see which programs fit you.
If your income is lower than before
When your income drops, you may qualify for more help. For example:
- Your tax credit (APTC) may go up, so you pay less each month.
- If you don’t get a tax credit now, you may become eligible for one.
- You may qualify for a ConnectorCare plan, which can lower your monthly and out-of-pocket costs.
- If your income is low enough, or you meet other requirements, you may qualify for MassHealth.
If your income is higher than before
When your income goes up, you may qualify for less help. For example:
- Your tax credit (APTC) may go down, so you pay more each month.
- Your ConnectorCare plan type may change.
- You may no longer qualify for some programs.
If your income changes suddenly
When your application asks how much you earn now, enter your current income. Then enter your best guess of what you expect to earn for the whole year.
Try to keep both numbers as close to the truth as you can. If your income changes again, update your application.
Why reporting changes quickly matters
Your tax credit is based on the income you expect to earn. It’s only an estimate. When you file your federal taxes, the government checks your actual income for the year.
- If you got more help than you should have, you may have to pay some back.
- If you got less, you may get more back on your tax return.
Reporting changes early helps the Health Connector adjust your help during the year.