What the Obamacare subsidy is
Its official name is the premium tax credit. According to the IRS, you can receive it in advance: the Marketplace estimates it with your expected income and pays it directly to your insurance company each month, so your premium goes down. The next year, when you file taxes, what you received is compared with what you were actually entitled to.
Who qualifies in 2027
Generally, you need to meet all of these:
- Household income between 100% and 400% of the federal poverty level. For 2027 coverage, the 2026 figures are used: for example, $15,960 to $63,840 a year for 1 person and $33,000 to $132,000 for a family of 4, in the 48 contiguous states and D.C. Figures are higher in Alaska and Hawaii.
- Not having an offer of job-based coverage considered affordable, or Medicaid, CHIP or other qualifying coverage.
- Starting January 1, 2027, according to HealthCare.gov, being a citizen or having one of these statuses: lawful permanent resident (green card), Cuban or Haitian entrant, or COFA migrant.
- Filing taxes and, if you are married, not filing separately (except for IRS exceptions such as victims of domestic abuse or spousal abandonment).
According to CMS, because of a change in law, help is no longer given to lawfully present immigrants who earn less than 100% of the poverty level and don’t qualify for Medicaid because of their status.
See the 2027 Obamacare dates and full income tableHow the help is calculated
According to the IRS, the credit is based on the price of the second-lowest-cost Silver plan available to you in the Marketplace, minus a percentage of your income set by law.
You can use the help on any plan level (Bronze, Silver or Gold), but it can never be more than your plan’s premium. That is why, with the same help, a Bronze plan may cost less per month and a Gold plan more.
Differences between Bronze, Silver and Gold plansWhy reporting changes matters more now
According to the IRS, starting with tax year 2026 there is no longer a cap on repaying excess help. If your income for the year ends up higher than you estimated, the full difference is added to your taxes: it lowers your refund or increases what you owe.
That is why the IRS asks you to report changes to the Marketplace as soon as they happen: income going up or down, getting married or divorced, having a child or moving.
If your income changes mid-year, update your Marketplace application as soon as you can. That lowers the risk of a surprise when you file.
Form 8962 and keeping your help
If you received help in advance, the IRS requires you to file Form 8962 with your return, even if your income would not otherwise require you to file. If you don’t, you may lose advance help in future years.
According to CMS, on the federal platform (HealthCare.gov) one year of not filing and reconciling is enough to lose advance help in 2027.
Frequently asked questions
How much is the Obamacare subsidy in 2027?+
It depends on your income, your age, your area and the price of the second-lowest-cost Silver plan where you live. There is no fixed amount; HealthCare.gov calculates it when you apply.
Did the extra help available until 2025 come back?+
No. According to the IRS, removing the 400% limit was only for 2021 through 2025. Starting in 2026, there is generally no help above that level. If Congress changes the law, this could change.
Do I have to pay the subsidy back?+
If you received more help than you were entitled to based on your actual income, yes. Starting with tax year 2026 it is repaid in full, with no cap.
What income should I enter on the application?+
According to HealthCare.gov, your estimated income for the year of coverage, not last year’s. If it changes, update it.
What happens if I don’t file Form 8962?+
According to the IRS, if you received help in advance and don’t file it, you may lose advance help in future years. According to CMS, on HealthCare.gov one year without reconciling is enough to lose it in 2027.
Can I use the subsidy on a Bronze plan?+
Yes. The help works on any Marketplace plan level, but it can never be more than the premium of the plan you choose.
Sources
- IRS · Questions and answers on the premium tax credit
- HealthCare.gov · Income levels and savings
- HealthCare.gov · Lawfully present immigrants (changes starting 2027)
- CMS · 2027 Payment Notice final rule
- HHS / ASPE · 2026 federal poverty guidelines
- HealthCare.gov · Federal poverty level (prior year’s figures are used)
Facts verified on November 10, 2026. Rules change: if you read this later, confirm with a benefits consultant.
Educational content; not legal, tax or immigration advice. Latin Prime Financial Group is a private insurance agency, not affiliated with the government, HealthCare.gov, the IRS or CMS. Eligibility and the amount of help depend on your income, family, state and status, and the rules may change. Limited-benefit private health plans do not replace Affordable Care Act coverage, may exclude pre-existing conditions and do not help you avoid state penalties (California, Massachusetts, New Jersey, Rhode Island and D.C.). Talk to a tax professional about your return.