This calculator is hosted with permission from Samuel J. Ferguson, Ph.D. For the mathematical background of this calculator, please read Obamacare And A Fix For The IRS Iteration by Samuel J. Ferguson. For an example of when you need this calculator, please read When TurboTax and H&R Block Give Self-Employed Wrong ACA Subsidy.
Warning: this calculator is only for research purposes. We don’t take any responsibility for the results. This website does not provide any legal or tax advice. Consult a tax professional.
Use this calculator only if you qualify. Requirements include:
- Your health insurance is a qualifying plan from a government exchange.
- Your earned income from self-employment exceeds the net health insurance cost that you will deduct (for instance, it exceeds your annual unsubsidized health insurance premium).
- You are neither eligible for Medicaid, nor for an affordable health insurance plan from an employer or similar. Note that you qualify for Medicaid in a state with income-based Medicaid expansion if your modified adjusted gross income is less than 138% of the federal poverty line for your location and household size. If your state does not have income-based Medicaid expansion, you must still have modified adjusted gross income of at least 100% of the federal poverty line. You can use the subsidy calculator to check what your modified adjusted gross income would be if you tried to get a subsidy.
- You had coverage for all 12 months (if this is not true, expect a fraction of the subsidy equal to the fraction of months you had coverage).
- You will deduct net health insurance cost on your tax return.