The Ways in Which ObamaCare is and isn’t Free ObamaCare is free for some via Medicaid expansion, offers cost assistance to others via the marketplace, and cost those without cost assistance money. Below we discuss all the ways ObamaCare is or isn’t free depending on income and state. TIP: All cost assistance mentioned below is based on family size… Read More
Whether it is individual costs, insurers costs, or costs as a nation, drug price increases go hand-in-hand with rising costs under the ACA. This is a monetary and moral issue, but where is congress and where is the code of ethics?
When it comes to Advanced Premium Tax Credits, it is always tempting to take the maximum amount you qualify for. However, repayment limits can mean owing back credits.
Every American is allowed two full months without coverage a year, so if you find yourself missing a month you can take the short coverage gap exemption on form 8965
Capital gains from the sale of your primary home under $250,000 can be excluded and don’t affect subsidies. The exclusion is $500,000 for a family.
If you sort plans by price you’ll be able to easily find HSA compatible High Deductible Health Plans.
Federal foster care or adoption assistance income is exempted from MAGI and won’t affect Medicaid or tax credit eligibility.
All US citizens, who qualify based on income, must obtain coverage or an exemption. For someone traveling back and forth between the U.S. they can be exempt for spending 330 consecutive days in the year outside the US.
An incarcerated person can’t use the Marketplace, doesn’t owe the fee for not having coverage, and can be dropped from a family plan without penalty.
If you file a tax extension with form Form 4868 the extension applies to all ACA related tax forms including Form 8962 for tax credits and Form 8965 for exemptions.
Section 9010 of the Affordable Care Act includes a tax on America’s largest insurers, the one’s who profit the most off of ObamaCare.
People filing taxes together should get a family plan together, if you want your own plan simply leave the plan and get individual coverage starting Jan 1st.
You must project to claim at least 100% of the Federal Poverty Level in household income to qualify for tax credits through ObamaCare. This is true in all states.
We have reported that our joint income will be 25,000 for this tax year. If our income falls slightly below this amount, will we still be eligible for Obama Care or would this negatively affect us? I understand that the limit to be eligible is 12500 per person..
There aren’t copayment restrictions, but plans must offer an actuarial value of at least 60%, which means they must pay on average 60% of all costs of all people on the plan.
Marketplace cost assistance is based on annual MAGI, but Medicaid can use monthly MAGI. This means lump-sum income can throw off cost assistance for the year.
You can use your Health Savings Account (HSA) for out-of-pocket medical costs, including dental and vision and dental and vision premiums.
How to Understand Household Income, Family Size, Tax Family, and Coverage Family for ObamaCare Cost Assistance For ObamaCare, your “household” is your “tax family” (head of household, spouse, and tax dependents). Cost assistance is based on household income and size, the people who share a plan are called a “coverage family.” With this in mind, Household… Read More
How IRA’s and HSAs work with the ACA Before-tax and tax deductible contributions (like to a traditional IRA) lower MAGI and increase subsidies. After-tax contributions lower MAGI on withdrawal (like the Roth IRA). HSA’s are tax free in and tax free out, which make them especially cool. This is generally true for ObamaCare’s tax credits… Read More
Funding a 401(k) lowers MAGI, but funding a Roth IRA doesn’t due to how it’s taxed. Anything that affects MAGI can affect ObamaCare’s tax credit amounts.
Taxable retirement account withdrawals count toward MAGI income for ObamaCare tax credits, but pre-taxed withdrawals and early withdrawal penalties don’t.
If you have a gap in health coverage you’ll owe 1/12 of the fee for every month you don’t have coverage or an exemption.
If you have no income, and you are a student, your access to assistance depends upon your tax filing status and the state you live in.
If you estimated your income to qualify for subsidies, but didn’t make enough, you don’t owe back any money and can keep the tax credits you got in advance.
ObamaCare counts income that counts as household income, that is your Modified Adjusted Gross income (MAGI) and the AGI of dependents.