<p>We are a household of three (two parents, one college age daughter who is claimed on our taxes). My wife and I decided to buy insurance from the federal run marketplace. We also decided to have my dd remain on her current college plan at least for next year and not to buy from the marketplace. When the government determines our income for determining the subsidy do they also include my dd income (mainly taxable scholarship income) in the calculation since she is not buying? It appears that they use household size to determine the 100%-400% cutoff points for qualifying. Also are Roth conversion counted? My research says yes.</p>
<p>I have called the hotline but they are so overload that they say it could take 5-7 days for a response. </p>
<p>One good thing is that you can ghcange your subsidy calculation amount at any time. If you find that your income changes, you can lessen your tax burden by informing the marketplace of the change within 30 days. you also do not need to take the subsidy. If you don’t and you qualify for it, it comes back as a tax credit. </p>
<p>They do, which is good for you. Your household will be 3, since your daughter is in your household, which means that the cutoffs will be higher.</p>
<p>Thanks. One question I have not found the answer for is will I still be able to use the 1040A to file my taxes next year? This is important since I currently met the simplified needs test for FA. I did under report my daughter income (didn’t realize how much of her scholarships/grants ended up taxable) but I can reduce my income so the household income will be lower than reported on the application.</p>
<p>The scary part is that I gave up my grandfather plan which had the same coverage (as it applies to me) but at half the cost of the identical plan (has some extra bells and whistles that don’t apply to me) on the marketplace. With the subsidy it is worth it but without it it’s a nightmare. It’s a roll of the dice.</p>
<p>There is no change in the basic tax forms you use. Just two extra lines on the 1040A and a separate form (8962) to deal with reconciliation of the premium tax credit, but as you did not get a subsidy in 2014, you won’t have to worry about that until your 2015 return is due. If your overall income is low enough to meet the simplified needs tests for FA, I think you will be eligible for subsidies no matter what — and you do have the option to take less than the full amount of the advanced subsidy to give yourself some room for additional earnings. It’s crazy to reduce your own income unless you are right at the cutoff for eligibility for any subsidy - 400% of the poverty level – but if you had that sort of income. </p>
<p>If your income is less than 250% of FPL you are also eligible for cost sharing subsidies on a silver plan. It would be worthwhile to reduce your income to this level. </p>
<p>Change “would” to “could” – a subsidized cost-sharing silver plan is the best value for people who are regularly using health care services above and beyond routine preventative care (which is now provided free on all plans). But for those who are low health care users, the lower premiums of a bronze plan might outweigh the benefits for a silver plan. Of course, at 250% FPL and below, the subsidized cost of the premiums for silver plan is pretty low, so the numbers definitely start to favor the silver plan.</p>
<p>Obviously no one can predict what their health care costs would be for the coming year, but past history is at least an indication of probabilities. </p>
<p>But here’s my point: I have a high deductible plan which means that I pay the full allowed cost for most services until I meet the deductible – I have gone to the doctor more this year than I have in past years, but even so my end-of-year out-of-pocket is about $750 – or, if spread out over the year, less than $65/month. For me the premium differential between bronze & silver is well above $65/month, so I come out ahead by saving the money in premiums.</p>
<p>But of course each person and their medical needs is different. It’s just that the idea of optionally reducing one’s income qualify for benefits that turn out to be very modest or negligible doesn’t make a lot of sense. On the other hand, if noname has a chronic medical condition requiring regular medical visits or expensive prescription medication, then those extra subsidies could represent quite a significant saving. </p>
<p>Pay attention to 3younguns. If your income is less than 250% of the poverty level AND you buy a Silver plan, you get a smaller deductible and lower co-pays. It can make a huge difference in your costs. But this only works for Silver plans.</p>
<p>Thanks for all the replies. I have tried to research these issues carefully but it can be a minefield. The decision to leave a grandfathered plan was not taken lightly. I still feel it might be a mistake. Who knows what congress will do in the years to come. The cost to the taxpayer for these subsides is high.</p>
<p>Until last year, I was a very light user of medical care. Basically zero. Last year, like many in their 50s, I hit my first bump in the road. Luckily I had private (and very expensive) insurance so my costs was limited to about 8K. I definitely feel that the small additional cost of a silver plan to get the lower deductible and more importantly the lower max out of pocket is worth every penny. All it takes is one accident, surgery or illness to cause major bills. If I was younger than it might be different story but those days are gone.</p>
<p>I believe you have to have income for an insurance policy under ACA…or you get put into the Medicare pool…if your state is a Medicaid expansion state. And remember, not all doctors take Medicaid new patients. </p>
<p>Why don’t you just sell a camera lens a year and get yourselves insurance?</p>
<p>But the bigger question…how will you pay your bills if you have $0 income? </p>
<p>I thought you were on target to have millions in your retirement accounts. </p>
<p>I’m tired of your talking about your fabulous financial planning on one hand, and your gaming the system on the other.</p>
<p>Is this the way you got need based aid for college too?</p>
<p>No. You get Medicaid. IF your state is an expansion state. </p>
<p>And everything that thumper said. (hopefully my advice helps people that really need it though). </p>
<p>Medicaid and subsidies are for people like me and my family. People who struggle to put food on their tables. Not people who gloat about gaming the system. </p>
<p>Medicaid is the insurance for folks with no income and limited assets. Medicare is generally paid for by premiums and having worked a minimum of 40 qualifying quarters. Yes, if you want a subsidy under the Affordable Care Act, you have to have a minimum amount of EARNED income as defined by the act. The rules and calculator spell things out fairly well, I believe.</p>
<p>Our D won’t qualify for any subsidy unless she gets a job and meets the minimum income limits. Here’s hoping she will get a job that pays her in 2015. If she doesn’t we will have to explore other options, like paying 100% of her premiums and/or cobra or something else that may help until she gets a job.</p>
<p>It is income based if you have an income. If you have NO income, you get Medicaid…but ONLY if your state is a Medicaid expansion state. If not, you get nothing. If you have no earned income, you cannot get a subsidized policy.</p>
<p>And if you qualify for a subsidy, it is HIGHLY unlikely that your premium would be $0.</p>
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