What might happen if someone fails to report income changes when using the Marketplace?

Failing to report income changes while using the Marketplace can lead to a lower allocation of tax credits or potential fines due to the discrepancies that may arise when the actual income does not match what was reported. The Marketplace provides subsidies and tax credits based on the estimated income reported at enrollment. If an individual's income increases but they do not update this information, they might receive more financial assistance than they are entitled to when tax filings are completed. This can result in owing money back during tax time, as they have received a higher amount of subsidies than they qualify for based on their actual income. Additionally, if such changes are not reported, it could trigger penalties associated with the incorrect filing, underlining the importance of accurate and prompt reporting to maintain legal compliance and avoid financial repercussions.