How does the income cap work?
A. The income cap is designed to ensure that the premium reductions are going to people who most need the help. If your income for the year in which you are receiving the premium reduction (2009 and/or 2010) is more than $125,000 (or $250,000 for married couples filing a joint federal income tax return) all or part of the premium reduction may be recaptured by an increase in your income tax liability for the year. If you think that your income may exceed the amounts above, consult your tax preparer or contact the IRS at 1-800-829-1040.
