Wikipedia defines a subsidy as “a form of financial or in kTim Jacksonind support extended to an economic sector(or institution, business, or individual) generally with the aim of promoting economic and social policy.” So a tax subsidy is like a tax break in the form of a cash payment.
For example, with insurance, a tax subsidy can lower the amount of money you spend on your monthly premium or reduce your out of pocket costs. Whether you qualify for a tax credit or how much of a tax credit you can get basically depends on your income. So let’s say you qualify for a $130 tax credit and the insurance plan that you want costs $200 a month then you would only have to pay $70 a month for the plan instead of the $200.
Of course for all of your health insurance questions and needs you can call The Health Insurance Specialists. We can help you get an idea of if you will qualify for a subsidy on your health insurance and answer any questions you may have on this subject.
This article was written by Katharine, a contributing writer and employee of The Health Insurance Specialists. Inc.
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