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Old 06-29-2012, 08:06 AM
 
19,238 posts, read 15,013,536 times
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Default How is income figured for Obamacare?

After yesterday Obamacare has my attention....in a different way.

How will they figure income??

I am self employed.

Will my income be the bottom line of my 1040??

I am really confused.
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Old 06-29-2012, 08:16 AM
 
Location: Scottsdale, Arizona
1,360 posts, read 903,454 times
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Quote:
Originally Posted by Driller1 View Post
After yesterday Obamacare has my attention....in a different way.

How will they figure income??

I am self employed.

Will my income be the bottom line of my 1040??

I am really confused.

It will be your NET income after expenses (with the usual deduction for half of the FICA taxes since you pay both parts of it). So it will be the amount that you transfer over from your business schedule (like a schedule C) over to your 1040.

However, I'm not sure if they are going to use AGI or income before all of the ridiculous nonsense on a 1040 that alters a person's actual income downn to some ridiculous low number after "deductions", "exemptions", etc, etc.

That is the real question. But more importantly. Now that the law has been cleared by the Surpreme Court - it is important to note that the actual percentage that a person is penalized can also be increased over a period of time if it becomes obvious that the entire scheme is not funded well enough after the first few years. Income taxes as well as social security and medicare are way more now than when they were initially introduced. So now that the ability to tax people for this scam has been approved, the flood gates are open to increase the amount(s) they have to pay as time goes on.

I'm curious too - that if by the year 2016 when the penalty increase to 4% of income if someone does not secure insurance on the open market, does that mean if they pay that every year (which would be $2,000 a year on income of $50,000 with no family or children/single) that if they incurr health and medical costs that they do not have to pay those bills since they paid the penalty or then do they have to pay the penalty as well as all of the medical bills that resulted from them not having insurance.

And what happens to someone who right now in 2012 is still paying off large medical bills from 2009, 2010, 2011 and/or 2012. They will be forced to get insurance or pay a penalty/tax in 2014 while they are still paying off previous large medical expenses that they incurred before the law became active.

It is a three ring circus sideshow. . . .
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Old 06-29-2012, 08:22 AM
 
Location: Beautiful Upstate NY!
12,244 posts, read 15,946,193 times
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Quote:
Originally Posted by Skydive Outlaw View Post
It is a three ring circus sideshow. . . .
Even PT Barnum couldn't find enough suckers for this one! It's going to be an administrative nightmare and I think the Dems are really going to regret this one.
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Old 06-29-2012, 08:27 AM
 
19,238 posts, read 15,013,536 times
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Quote:
Originally Posted by Skydive Outlaw View Post
It will be your NET income after expenses (with the usual deduction for half of the FICA taxes since you pay both parts of it). So it will be the amount that you transfer over from your business schedule (like a schedule C) over to your 1040.

However, I'm not sure if they are going to use AGI or income before all of the ridiculous nonsense on a 1040 that alters a person's actual income downn to some ridiculous low number after "deductions", "exemptions", etc, etc.

That is the real question. But more importantly. Now that the law has been cleared by the Surpreme Court - it is important to note that the actual percentage that a person is penalized can also be increased over a period of time if it becomes obvious that the entire scheme is not funded well enough after the first few years. Income taxes as well as social security and medicare are way more now than when they were initially introduced. So now that the ability to tax people for this scam has been approved, the flood gates are open to increase the amount(s) they have to pay as time goes on.

I'm curious too - that if by the year 2016 when the penalty increase to 4% of income if someone does not secure insurance on the open market, does that mean if they pay that every year (which would be $2,000 a year on income of $50,000 with no family or children/single) that if they incurr health and medical costs that they do not have to pay those bills since they paid the penalty or then do they have to pay the penalty as well as all of the medical bills that resulted from them not having insurance.

And what happens to someone who right now in 2012 is still paying off large medical bills from 2009, 2010, 2011 and/or 2012. They will be forced to get insurance or pay a penalty/tax in 2014 while they are still paying off previous large medical expenses that they incurred before the law became active.

It is a three ring circus sideshow. . . .
I do file a "C"...but that is deductions...not income.
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Old 06-29-2012, 09:23 AM
 
3,099 posts, read 2,200,558 times
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Actually Hawaii has had mandatory health insurance for years. They have much lower insurance rates since everyone is paying (like car insurance). And people get health problems fixed before they blow up into major problems, so healthier people.

For the rest of the country right now, just people who need it have health insurance, so they are paying like $600 per person per month (the last someone told me). But I would expect that to go way down???

Again like car insurance - if everyone is paying, the cost for all those wrecks and accidents is SPREAD out.
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Old 06-29-2012, 10:10 AM
 
19,238 posts, read 15,013,536 times
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Quote:
Originally Posted by Billy_J View Post
Actually Hawaii has had mandatory health insurance for years. They have much lower insurance rates since everyone is paying (like car insurance). And people get health problems fixed before they blow up into major problems, so healthier people.

For the rest of the country right now, just people who need it have health insurance, so they are paying like $600 per person per month (the last someone told me). But I would expect that to go way down???

Again like car insurance - if everyone is paying, the cost for all those wrecks and accidents is SPREAD out.
Nope....everyone does NOT pay car insurance.

Only those with vehicles do.

Even then....some drive uninsured.
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Old 06-29-2012, 10:11 AM
 
19,238 posts, read 15,013,536 times
Reputation: 7829
Quote:
Originally Posted by Billy_J View Post
Actually Hawaii has had mandatory health insurance for years. They have much lower insurance rates since everyone is paying (like car insurance). And people get health problems fixed before they blow up into major problems, so healthier people.

For the rest of the country right now, just people who need it have health insurance, so they are paying like $600 per person per month (the last someone told me). But I would expect that to go way down???

Again like car insurance - if everyone is paying, the cost for all those wrecks and accidents is SPREAD out.
What does people without the money to pay do and how is this determined???
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Old 06-29-2012, 11:42 AM
 
Location: Scottsdale, Arizona
1,360 posts, read 903,454 times
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Quote:
Originally Posted by Billy_J View Post

Again like car insurance - if everyone is paying, the cost for all those wrecks and accidents is SPREAD out.

Yeah right. That is like saying if everyone starting doing cocaine then the price of an 8-ball (total cost to grow it, transport it and get it to a dealer) would go down by 20-30%

The cost of health care overall is only going to go up. Both for what it costs to obtain it on the open market as well as the percentage of income that is taxed for those people that do not secure health care after 2014.

The only way the cost would go down would be if there was a huge influx of medical professions that entered the industry, and at lower wages combined with a general lowering of the quality of care.
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Old 06-30-2012, 06:46 AM
 
19,238 posts, read 15,013,536 times
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I did a little checking yesterday....from what I understand, this is the deal.

A family of four can make up to $29,000 and get medicare.

It does not matter what they own.

So, I file "0" income at the bottom of my 1040.

I guess my hubby and myself will get medicare.

It does not matter what we own.
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Old 06-30-2012, 07:39 AM
 
3,099 posts, read 2,200,558 times
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Well again look at Hawaii's mandatory health care system...

http://www.nytimes.com/2009/10/17/he...pagewanted=all
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