<p>I’m with poetgrl here. The family would hire the kid, just like many families hire gardeners, housecleaners and nannies. No funny business about the hiring being a business expense; they’d just pay the money, deal with payroll taxes and not deduct the salary on their taxes.</p>
<p>If a family hired their son for $200,000, that might be looked at as a way to avoid gift taxes. But $12K is less than the $28K that parents can give their children tax-free every year.</p>
<p>Insurance for most young people is cheaper now, because most young people are subsidized now. The subsidies are based on the Silver plan, but young people can apply them to the Bronze plan and get very cheap insurance.</p>
<p>Ok… I thought it was going to be a business doing the hiring.</p>
<p>So the parent writes nothing off? </p>
<p>The kid is self employed?</p>
<p>Hmmmm…</p>
<p>This kid cant work and he cant get SSI? He has more than 2,000 in assets?</p>
<p>I don’t understand this issue with hiring the adult child. Family businesses routinely have their children work for the business. Most are paid a lot more than $12K a year, too. Many businesses have been in the same family for generations.</p>
<p>“Ok… I thought it was going to be a business doing the hiring.”</p>
<p>I did, too - so nevermind.</p>
<p>I don’t think it’s real easy to get SSI for an Aspie kid. I doubt that my kid could get SSI, and although we’d love to see him in a fulltime job, we can’t imagine what it would be.</p>
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<p>I don’t know. Does my once nanny, now housekeeper, have her own business? I don’t think so. I pay all the payroll taxes.</p>
<p>I don’t see why it has to be particularly complicated.</p>
<p>Post #6958 describes the young people we are talking about. They are not subsidized according to Romani and are not currently buying insurance because of the cost according to Romani. The cost for them is not going down under ACA it’s going up although they may not know that if they haven’t ever tried to buy it. But it’s more now, not less.</p>
<p>I don’t know how big this group is but it’s bigger than some of you seem to think.</p>
<p>Flossy, what percentage of young people do we think are going to be subsidized?</p>
<p>What percentage make over minimum wage and aren’t being paid for by parents? It’s a bunch.LOL</p>
<p>"I don’t see why it has to be particularly complicated. "</p>
<p>We think in a narrow pathway where the money is not being double taxed. If that expense is acceptable, it is not complicated.</p>
<p>Flossy… Lol…</p>
<p>“What percentage make over minimum wage and aren’t being paid for by parents? It’s a bunch.LOL”</p>
<p>So it’s a bunch of young adults who will get subsidized health insurance?</p>
<p>No, Romani says minimum wage will put them above the subsidy level. So, what’s their incentive if the cost was too high before, because it’s higher now.</p>
<p>Perhaps, she will come back on and explain.</p>
<p>[Poverty</a> Guidelines](<a href=“http://www.direct.ed.gov/RepayCalc/poverty.html]Poverty”>http://www.direct.ed.gov/RepayCalc/poverty.html)</p>
<p>Federal poverty level guidelines are quite clear. So a young person is eligible for subsidies almost upto 44k or so. It is only a question of how much subisidy.</p>
<p>Flossy…how many young simgle people do you think make over $45,000 a year?</p>
<p>I think we went through this a few weeks ago. </p>
<p>Some may not get any because the premiums are very low even for someone making 25k because of their age and location which means they will need to pay in full. There is a sliding scale of income they need to pay starting at 4.5% (?) until they reach 9.5% of their income.</p>
<p>What was noticed was that in Illinois the premiums were 165 which was not getting a subsidy for someone making 26k (I am paraphrasing numbers from memory and these are not exact).</p>
<p>The young have it cheap. Whether they will choose to spend 2k buying insurance is what is the big guessing game.</p>
<p>Hiring your kid should work for the purpose stated. The reason is we are faced with a truly bizarre situation. In states where Medicaid has not been expanded, a person needs a minimum amount of income to qualify for a subsidy. Has there ever been a situation where you can make not enough money to qualify for a subsidy? So the objective is to give the kid enough income so that he qualifies for a federal subsidy. Don’t confuse the need for enough income with the potential problem of making too much money to qualify for the subsidy.</p>
<p>If you pay your kid to do housework or babysit or whatever, if you exceed the very low IRS threshold you will need to pay social security tax, and he will need to pay also.</p>
<p>I was thinking along the same lines as dstark. So if the parents are not paying the kid as an employee which they would not be able to do if they have no business income for 3 successive years, I guess they could make non-deductible 1099 or even W2 payments to their kid. The kid would have to file a Schedule C and declare it as taxable income.</p>
<p>I watched Ezekiel Emanuel (he apparently was involved in crafting the ACA law) on a news program this weekend and he was dissembling as usual. He said anyone could keep his doctor as long as they are willing to pay more for insurance. Au contraire, in Ca., there are no insurance companies selling policies in 2014 that have wide networks. I wish these guys would stop lying.</p>
<p>He also said we would all like this much better once we see the PR campaign. Okay…</p>