If your employer's ICHRA is considered affordable, waiving your HRA generally does not make you eligible for Premium Tax Credits. Premium Tax Credit eligibility is determined under IRS and Health Insurance Marketplace rules.
Does waiving my ICHRA make me eligible for Premium Tax Credits?
Not necessarily. If your employer's ICHRA is considered affordable, you generally aren't eligible to receive Premium Tax Credits for the same coverage period, even if you waive your HRA.
Who determines Premium Tax Credit eligibility?
Premium Tax Credit eligibility is determined by:
The Health Insurance Marketplace
Applicable IRS regulations
Take Command cannot determine your tax credit eligibility.
What should I do before accepting Premium Tax Credits?
Before accepting Premium Tax Credits:
Review your employer's ICHRA offer.
Confirm your eligibility through the Health Insurance Marketplace.
Consult a qualified tax professional if you have questions about your tax situation.
Receiving Premium Tax Credits when you're not eligible may affect your federal tax return.
When does this article not apply?
This article explains Premium Tax Credit rules only.
It does not explain how to waive your ICHRA or enroll in health insurance.
Key takeaway
If your employer's ICHRA is affordable, waiving your HRA generally doesn't make you eligible for Premium Tax Credits. Confirm your eligibility with the Marketplace before accepting tax credits.