Obamacare Tax Credits and the Public Charge Assessment in Green Card Applications
This article explains that, under the public charge rule in effect from February 24, 2020, use of Obamacare tax credits neither helps nor hurts a green card application, and outlines the positive and negative factors considered by DHS. It also notes a March 9, 2021 update that the Biden administration would rescind the rule.
#Update [2021/03/09] The Biden administration will rescind the Trump-era public benefits rule; see this article for an explanation. This means that Obamacare tax credits will no longer be considered a public charge factor and will not affect green card applications.
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USCIS has implemented a new rule since February 24, 2020, for the first time making receipt of public benefits one of the factors considered in green card approval to determine whether the applicant is likely to become a public charge in the future. Other factors include age, health, family status, assets and financial status, education and skills. If you purchase commercial insurance yourself, this will be a positive factor in the public charge assessment; however, if you use Obamacare tax credits, this item is neither positive nor negative.
Factors Considered by DHS for 'Public Charge'
| Positive Factors | Negative Factors | |
|---|---|---|
| Age Range | 18-61 years old | – Under 18 or over 61 – Except if able to work or with sufficient assets |
| Health Status | Applicant has no health problems | Has a chronic disease affecting work or school |
| Family Status | – Has other family members' income support – Family size will not become a public charge | |
| Household Assets | – Annual income above 125% of the federal poverty line – Or has sufficient household assets | – Annual income below 125% of the federal poverty line – And lacks sufficient household assets |
| Education and Skills | – Applicant has a high school diploma or higher – Has work experience and skill certificates – Fluent in English | – Applicant has low education level – No work experience or skill certificates – Poor English |
Other Significant Positive Factors
- Applicant's household annual income is above 250% of the federal poverty line
- Applicant has work authorization, is employed, and income reaches 250% of the federal poverty line
- Applicant has private health insurance
Other Significant Negative Factors
- Applicant is not a full-time student, has work authorization but is unemployed
- Applicant is currently receiving or about to receive public benefits
- Applicant has been diagnosed with a disease requiring long-term treatment that affects the applicant's ability to work or attend school, or makes them unable to care for themselves; the applicant has no health insurance and does not plan to purchase it, and has no financial resources to cover treatment costs
- Applicant has previously been denied admission due to public charge factors
Does Using Tax Credit Affect Green Card Application?
Health insurance can be broadly divided into two categories:
- Public Health Insurance: government-funded health insurance programs, most commonly Medicare and Medicaid.
- Private Health Insurance: health insurance without government funding, including employer-provided insurance and insurance purchased by individuals on the Marketplace or other platforms. Low-income individuals purchasing insurance on the Marketplace can use tax credits to offset part of the premiums.
When the Department of Homeland Security assesses whether a green card applicant may become a public charge, having private health insurance is a significant positive factor; however, if the applicant uses tax credits to offset premiums, this item is no longer a positive factor, nor is it a negative factor.
It can be understood this way: if you have health insurance and it does not require government funding and is not government-funded Medicare or Medicaid, then you will not become a burden on taxpayers due to health issues in the future. If tax credits are used, although the government does not need to pay out of pocket or use other taxpayers' money to pay for you, the money is not entirely from you either; it is offset against taxes you would have owed. Therefore, when considering 'public charge,' this item becomes neither a positive nor a negative factor.
