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I have a teenager who has a part-time job. Do I count her income as part of our household income when we apply for subsidies?

The answer depends on whether she earns enough income to be required to file a federal income tax return on her own. Generally, child dependents aren’t required to file a return or pay taxes on their income if they earn less than $6,300 in a year. If your daughter earns …

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I have a college scholarship that covers my tuition and fees. Do I count that as income in determining my eligibility for subsidies?

Scholarship and fellowship payments for tuition and fees and course-related expenses required of all students are not counted as income in determining your eligibility. Payments for room and board are included.

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What if I don’t know what my income will be next year?

When you apply for financial assistance through Maryland Health Connection, you will be asked to estimate your expected income for the upcoming year. Often a good place to start is to consider what your income is this year, or what income you reported on your tax return last year. However, …

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I’m divorced and I pay alimony to my ex-spouse. Should I deduct that from my income in determining my eligibility for subsidies?

Yes. You deduct alimony that you pay from gross income to determine adjusted gross income. It will be excluded from income in determining your eligibility for premium tax credit and cost-sharing reductions.

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I get Social Security benefits but don’t make enough money to file a tax return and/or to pay federal income taxes on them. Do I count my tax-free Social Security benefits when I apply for premium tax credits?

Yes, all of your Social Security benefits (except Supplemental Security Income (SSI)) will be counted as income in determining your eligibility.  This will not affect your federal income taxes on these Social Security benefits. You will need to file a tax return if you are eligible for and elect to …

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Should I include veteran disability benefits in my household income?

Your household income is one of several items used to determine your eligibility for premium tax credits. While we cannot provide tax advice, when applying for subsidies through Maryland Health Connection, veterans’ disability benefits should not be included in your household income.

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What if one of my dependents is a full-time student?

If you can claim your child or another person as a dependent on your tax return, include the person as part of your household in your application. It doesn’t matter whether he or she is a full-time student. Also include anyone who is under 21 and lives with you, whether …

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Should I claim the tax credit on my taxes?

Yes. Although the tax credit is paid directly to an insurer on a monthly basis, it is in fact a tax credit that must be claimed on your annual income tax return.  Maryland Health Connection will provide you with IRS Form 1095-A by January 31 that you will use to …

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What happens if my income changes during the year?

If your income changes, it is very important that you alert Maryland Health Connection. The amount of the tax credit you receive to buy a qualified health plan, if you are eligible for one, is based on your modified adjusted gross income (MAGI) income. If your actual MAGI income at …

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