The Affordable Care Act (ACA) has been helping Americans, primarily those who weren’t getting health insurance through their employer, by providing subsidies.
What many people don’t know is the Premium Tax Credits (PTC) that pay for those subsidies are no longer reduced for many qualified people after 2025.
In 2026 and beyond, going one dollar over the amount for their family size, which is 400% of the poverty line, then they credit for get NONE of the subsidies.
…AND WILL HAVE TO PAY THE ENTIRE AMOUNT BACK. 😱
The Subsidy Danger for Self-Employed Americans
This poses a particularly dangerous problem for people who qualify for the subsidies but don’t have a predictable income.
Self-employed people are particularly vulnerable, such as indie Podcast Editors, as their income varies wildly from month-to-month.
Steve Stewart, co-founder of the Podcast Editor Academy and full-time, self-employed Podcast Editor, is facing this problem. If his income exceeds the limit in 2026, he may be looking at a *$24,000 tax surprise!
Disclaimer: Steve estimates the Premium Tax Credit is worth approximately $24,000 to his family. Neither Steve nor Sean make any estimate as to how much the Premium Tax Credit or any other tax planning strategy might be worth to you or any other viewer, listener, or reader.
What you need to know to avoid the Subsidy Cliff
Sean Mullaney, an advice-only financial planner, joins Steve to discuss ways Americans can control their taxable income – which is a key player in how the Subsidy Cliff is calculated.
The discussion is intended for general educational purposes only and is not tax, legal, or investment advice for any individual. Steve and The INSERT TRADE NAME do not endorse Sean Mullaney, Mullaney Financial & Tax, Inc. and their services.
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📝 Keep track of the topics and action steps to take that are discussed during the webinar.
✅ Check off boxes for the actions you want to pursue and notes about specifics for your personal situation.
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Disclaimer: This resource is made available to you by the Podcast Editor Academy and is for informational and educational purposes only. Please seek a competent professional before taking any action.
About Sean Mullaney, “The FI Tax Guy”
Sean is an advice-only financial planner and the President of Mullaney Financial & Tax, Inc.
He is the co-author, with Cody Garrett, of the book Tax Planning To and Through Early Retirement.
Sean has discussed personal finance and tax on numerous podcasts, including ChooseFI, The Long View, Motley Fool Money, and BiggerPockets Money. He has been quoted in media outlets including The Wall Street Journal, The New York Times, and MarketWatch.
Find more at his website: fitaxguy.com
The book: https://www.measuretwicemoney.com/book
Who else can benefit from this information?
Share this with your friend and colleagues who are:
- Self-employed Americans
- Adults preparing for retirement
- The FIRE movement
Many of these “strategies” (Steve’s word, not Sean’s) can also be useful to others, such as those seeking early retirement (FIRE) or want to reduce total lifetime taxes.
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