Health care spending is a major expense for many households. However, when you work for “the man,” your health care costs are often subsidized by your employer. The situation is different when you’re a business owner or self-employed. Managing health care costs when self-employed takes a little more planning.
Are You Eligible for a Subsidy Under the ACA?
The first thing to consider is whether or not you are eligible for a subsidy under the Affordable Care Act (ACA, also named Obamacare). If you meet certain income requirements and can purchase health insurance coverage via one of the health care exchanges, you can get a bit of a discount on your health premiums. It’s important to make sure you are accurate, though. If you end up claiming a larger subsidy than you are entitled to, it will come back to haunt you at tax time….