Navigating Health Insurance Options for Freelancers and Self-Employed
Income Considerations and Tax Implications
Freelancers often experience variable income, which can complicate the process of estimating eligibility for subsidies and tax credits. Under the ACA, subsidies are available to individuals earning between 100% and 400% of the federal poverty level6. It's important for freelancers to project their annual income as accurately as possible when applying for coverage to avoid discrepancies that could result in tax liabilities.
Additionally, self-employed individuals can deduct health insurance premiums from their taxable income, provided they meet specific criteria. This deduction can offer significant tax savings and is an important consideration when budgeting for health insurance7.