I have several questions about whether I am to enroll in Obama care and if I will penalized. First, my mother was worried she will be penalized for last year.
I know when you sign up for Obama Care, you are supposed to report possible future incomes.
We sold our house/building last year and she did not report that as possible future income. Honestly we did not know whether the building would sell or when it would sell. We had the building up for sale for over 2 years before it finally did sell. She was unemployed when it sold, and she is still unemployed.
Will she be penalized for not having health care even though she did get income from selling our home? Also, does she have to sign up for Obama Care this year if she is still unemployed but made money because we sold our home last year? If you could please help us that would be greatly appreciated.
I also wanted to know would I have to sign up for Obama Care. I recently quit my job and moved to a new area. I am currently unemployed but I do plan on finding a job. I actively looking for a new job, but as of right now, I am unemployed. Again, I know with Obama care you are to report possible future incomes, but I do not know how much I would be making or where I will be working.
Will I have to sign up for Obama Care, and if not, Will I be penalized?
Please help me with my concerns and inquiries. I do not want to be in trouble and I do not want to be penalized, so I am asking for your help and guidance on these matters. Thank you for your time and I hope to hear from you soon.
When you sell a home (estate) you can deduct most of that income and won't owe the 3.8% tax, unless you make over $500,000 in profit.
Here is how that works:
- There is a 3.8% tax on investment profits (including real estate) for profits of over $500,000, or the sale of multiple estates.
- If you have a gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. Tax topic 701 IRS.
- Since you can deduct this income, it doesn't count toward your MAGI, therefore it doesn't affect tax credits.
To your second question, if you have no job then you most likely qualify for free or low cost coverage through Medicaid (depends upon if your state expanded). If it didn't, as long as you can project that you will make above 100% of the Federal Poverty Level you will get very low cost coverage that can hold you over until you find a job via HealthCare.Gov. You have to enroll during open enrollment. So time is of the essence.
When you get a job, you'll be able to drop the Marketplace plan and roll over to an employer plan if they offer one.