In this section, we are looking for an estimated annual household income. Please refer to the section on Form 1040 or your most recent paycheck.

While filing taxes next year, the government will calculate the difference based on the actual income. If the actual income is higher than the declared income, this means that you received more subsidies than you where supposed to, which means you’ll end up receiving less tax credit. If the actual income is lower than the declared income, this means that you should be receiving more subsidies, which means you will be receiving more tax credit.

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