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HRA Hub; Shopping - Household income, tax credits and affordability
HRA Hub; Shopping - Household income, tax credits and affordability
Jessica T avatar
Written by Jessica T
Updated over 2 weeks ago

My Info: Household income

The section allows you to enter your total annual household income to help Take Command assess if you are eligible for tax credits. You can use the salary estimation tool to enter your hourly rate, hours per week, and weeks per year to help determine the annual income for your household.

What is total household income and how is it used?

Total household income is the combined earnings of everyone in your household. It's used to determine eligibility for certain benefits and subsidies, like healthcare tax credits when selecting a health plan. Each covered working family member’s income needs to be included in the annual household income, similar to how it is complete for IRS filings.

With the household income added, the Take Command system will complete a review of the information and advise the users of their eligibility.

It's very important to remember that you cannot accept a premium tax credit if you are claiming reimbursement through ICHRA. Here is a little more about how ICHRA affects your tax credit.

Tax credits

Regarding tax credits, it is important to take into consideration whether or not your ICHRA offer is considered "affordable."

  • If it is deemed affordable, then the employee cannot accept tax credits.

  • If it is deemed unaffordable, the employee can choose to either accept tax credits or the ICHRA reimbursement, but not both.

  • If an employee accepts the HRA offer, the employee can still shop for a plan, click ‘Show all plans’ to continue.

The Exchange website will provide individuals information on how to determine affordability for ICHRA.

If tax credits are available to you and you choose to accept them and continue shopping, the Take Command platform will only show you plans that are available on exchange. You will be directed to enroll in that plan separately from our website.

When you enroll in health insurance coverage through the Exchange, the Exchange will ask you about any coverage offered to you by your employer, including through an HRA. Your ability to claim the premium tax credit may be limited if your employer offers you coverage, including an HRA. Lastly, the employee also has the option to accept the HRA offer and waive coverage.

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