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 the end of the tax year is lower than you projected on your application for coverage, you may be entitled to additional financial help. If that is the case, the additional amount may be returned to you in the form of a tax refund (or subtracted from your balance due).
On the other hand, if your MAGI income is higher during the tax year than you projected and you are enrolled in a qualified health plan and receiving advanced premium tax credits, you may have received more financial help than you should have. In this case, you may need to reimburse the government for some of the tax credit that was paid on your behalf to your insurer (or it may be subtracted from your refund).
During the year, it’s important to report changes in your income or household size to Maryland Health Connection as soon as possible. You can adjust your tax credit so you don’t wind up owing money or getting a big refund on your next tax return.