f you’ve ever felt personally attacked by your health insurance bill… buckle up.
Because 2026 is about to enter the chat — and she’s bringing a plot twist so sharp it could slice through kiln shelves.
Let’s talk about the Subsidy Cliff.
(Yes, it sounds like a true crime documentary, and honestly… it kind of is.)
Right now, if you buy insurance through Healthcare.gov, you may qualify for discounts that make those monthly premiums slightly less painful. These discounts — premium tax credits — are based on your income. And for the past few years, even higher-income households could qualify. No hard cutoff. No financial booby traps. Just vibes.
But in 2026?
Oh, the cliff is BACK.
And not a gentle hill… a cliff-cliff.
It works like this:
Go just a little over the income limit (about $58,000 for a single person)… and your discount doesn’t go down gradually.
It doesn’t taper.
It doesn’t fade.
It just… disappears.
Zero.
Nada.
Poof.
Like your favorite glaze color when your supplier discontinues it without warning.
Let’s say you’re 45, single, making around $60,000 in 2025.
With subsidies, your insurance might run you $400–$500 a month.
But in 2026?
Same income.
Same plan.
Same person.
Except now…
NO subsidy.
Full price.
Hello, $900–$1,200 per month.
All because you earned a couple thousand more.
It’s like being punished for doing well — or for saying yes to overtime — or for finally selling those adorable seasonal gnomes that always fly off your shelves.
Don’t panic. (We save panic for things like kiln malfunctions and lost receipts.)
Here’s what smart, proactive studio owners — the ones building profitable, sustainable businesses — can do:
If you’re close to the cliff, a few smart moves can lower your taxable income without lowering your actual lifestyle.
Think:
These aren’t loopholes — they’re smart planning.
They change yearly. Don’t assume this year’s number applies next year.
Just because you received a discount last year doesn’t mean 2026 will treat you the same.
(2026 is unforgiving and honestly a bit dramatic.)
A tiny bump in income could mean a giant bump in your insurance bill in 2026.
But with good planning, you can soften the landing — or avoid the cliff entirely.
At pyop accounting, we help studio owners create financial systems that make this stuff easy. Because you deserve:
Your business’s job is to support you — not accidentally kick you off a subsidy cliff.
So let's plan now, not panic later.
The full article breaks down everything you need to know…
and trust me, you’re going to want to be prepared for 2026.
Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. You can email me at donna@pyopaccounting.com.
Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
