If you're self-employed and purchase your own health insurance, you may qualify for advanced premium tax credits, which are a type of tax credit that can help lower the cost of health insurance premiums. You may also be eligible for self-employed health insurance deductions.
Many people don’t realize they’re eligible for savings that could drastically reduce their health insurance premiums, or else they don’t know how to apply for them.
That’s where Catch comes in. Catch helps you recognize credits you qualify for, calculate savings, and keep your information in one secure place.
What is the advanced premium tax credit, and when do I get it?
The advanced premium tax credit reduces your monthly health insurance payments. The government pays your insurance company directly in the amount of the credit you receive, so you see immediate savings each month.
However, the credit isn’t automatic. If you don’t apply for it, you won’t receive it, even if you’re eligible. Catch can walk you through the process, file your information, and get you saving money on your next payment in under two minutes.
While it’s also possible to receive the credit as a single tax refund at the end of the year, you’ll have to pay full price on your monthly premiums and also remember to claim the credit on your return when filing your taxes the following year.
How do I know if I qualify?
You may qualify for premium tax credits if you meet certain criteria outlined by the federal government and clarified by Catch for you in an easy-to-use, step-by-step process. The amount of credits you receive will also depend on your income and the size of your family.
To start, you must be enrolled in health insurance through your state or the federal marketplace. That doesn’t mean you have to go wading through government websites or downloading tax forms, though. Catch can connect to your insurance plan directly and help you navigate your credit eligibility.
If you don’t have health insurance, Catch can also help you enroll in marketplace coverage (during the last two month of the calendar year during what’s called Open Enrollment, or anytime you’ve had a big life change - marriage, baby, move, loss of coverage - during what’s called Special Enrollment). Here, too, Catch can help you find the right plan and make sure you’re receiving the tax credits you deserve.
Is this the same as the self-employed health insurance deduction?
No. The self-employed health insurance deduction offers another way for freelancers or small-business owners to save on health insurance.
Rather than giving you savings in the form of a reduction to your monthly premium or a tax refund, the self-employed health insurance deduction allows 100% of your premiums to be deducted from your taxable income. The deduction allows your gross income to go down, which saves you money by decreasing your tax bill.
And it’s not only your premium that is deductible - those of spouses, dependents, and children under 27 are also eligible. In order to qualify, you must not be able to enroll in another health plan (such as your spouse’s employer plan), and your deductions can’t exceed your income for the year.
Can I combine the credits and deductions?
Yes. However, there are limitations. In general, you can’t save more from these two sources than the total amount of your eligible healthcare premiums.
Catch can help you capture credits and track your income. Offload the stress of researching what you qualify for and how to apply for it. Maximize your savings and get back to doing what you do best.