Why Filing Taxes and Verifying Income Matters for Your Health Insurance

If you're currently enrolled in a Marketplace health plan, your coverage is still active—but that could change if you don’t take care of a critical step: filing your 2024 taxes.

These changes are part of the new “One Big Beautiful Bill Act” and the Marketplace Integrity and Affordability Rule—which is already going into effect. Together they are designed to tighten up who qualifies for subsidies and make sure taxpayer dollars are going to those who meet all requirements. These verifications have always been in place, but the new administration is more broadly enforcing them. They are also adding data matching with the IRS and other verifiable sources to verify your income and eligibility for subsidies on the Marketplace. 

A new federal rule now requires the IRS and the Marketplace to match your reported income with your tax return. If your taxes aren’t filed and reconciled, you could lose your subsidy this year and may not qualify for help next year either. That means your monthly premium could increase drastically—or worse, your plan could be canceled.

Why Filing Your Taxes Is So Important

When you receive a subsidy to lower your monthly health insurance premium, that money comes from taxpayer dollars. To ensure that the help is going to those who truly qualify, the government requires that you file your tax return and reconcile the subsidy.

At tax time, the IRS compares how much financial help you received throughout the year with what you actually earned (your Adjusted Gross Income, or AGI).

• If you earned less than you estimated, you could receive a refund.

• If you earned more, you may need to pay back part of the subsidy.

If you don’t file at all, the government can’t verify anything—and you lose the right to receive subsidies in the future.

What Is Income Verification?

Income verification is how the Marketplace checks that the income on your application is accurate. In the past, a simple letter was usually enough—but not anymore.

If your estimated income for 2025 is drastically different from what you earned in 2024 or 2023, you may be required to submit proof of that change. This can include:

• A signed letter of explanation and income breakdown from your CPA

• A copy of your 2024 tax return

• Pay stubs or employment contracts

• A self-employment ledger with expected income

• Proof of a job change that impacts your earnings

These documents help justify why your income has changed and allow your plan to continue without disruption.

Don’t Wait Until It’s Too Late

If you haven’t filed your 2024 taxes yet, now is the time. And if you’ve received a letter from the Marketplace requesting income verification, don’t ignore it.

📞 Call your local agent at Utah Avenue Insurance. We can help you review what the Marketplace needs and submit the right documents to protect your health coverage.

🛡️ Better coverage starts here.