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And if you are one dollar over your estimate, you will have to pay back subsidies and then some!
Depends on your income. If you are still under the limit you will get subsidies, but they may be reduced. So you may owe a little bit. The penalties will be minimal if you pay up the amount you owe by April 15.
Depends on your income. If you are still under the limit you will get subsidies, but they may be reduced. So you may owe a little bit.
One would not be paying a penalty if h/she were under the limit. It is often difficult to predict income when one is self employed or is an independent contractor.
And what one owes is not always "a little bit." Our accountant had some clients who were horrified at what they ended up owing.
You will never hit your exact income estimate so we'd not expect penalties. I think by being one dollar over CA4Now only meant that you will lose subsidy if you exceed the income threshold by a dollar.
You will never hit your exact income estimate so we'd not expect penalties. I think by being one dollar over CA4Now only meant that you will lose subsidy if you exceed the income threshold by a dollar.
The tax penalty we paid exceeded the subsidy. And I know several people to whom this happened to.
I have to submit income verification to qualify for tax credits. The government will not accept my estimates (not sure why because they've always been accurate).
Last year, I paid the premium through April. Because I get a K-1 I have to wait until after Mar 15 to file tax returns. I submitted my tax return for income verification and qualified for tax credits. I got a refund for months Jan - Apr.
This year, I just decided to not attempt to qualify and will get it all back at the end of the year as part of my tax return.
I will have my daughter on the insurance plan when she will be about 22 years old. She will be in college. I am expecting her to apply to graduate school around then.
What if in the middle of the plan year she takes on a high paying job, causing us to exceed the subsidy cliff. Is there no going back once we have enrolled as a family of three?
Or, will she be able to get on the company health plan, allowing spouse and me to move on by drawing less income to maintain eligibility for subsidy?
If there is no going back it sounds like we should plan for the possibility of her taking the job and not enrolling her on our plan to begin with? Do I have this right?
She can switch to company insurance anytime, leaving just you two from that point forward. You just have to notify the exchange of the change when it happens. It will have an effect on your premium and subsidy.
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MAGI calculation for ACA threshold...(?)
Getting mixed results in web search, (Because MAGI is also a 'restriction' for IRA eligibility) but I need this to be accurate!!! (Do not want to exceed ACA cliff!)
For ACA eligibility calculations, is:
1) HSA a legitimate MAGI deduction from AGI? i.e. $40k AGI minus $8k HSA = $32k MAGI?
2) Traditional IRA a legitimate MAGI deduction from AGI? i.e. $40k AGI minus $5,500 Traditional IRA = $34.5k MAGI?
Getting mixed results in web search, (Because MAGI is also a 'restriction' for IRA eligibility) but I need this to be accurate!!! (Do not want to exceed ACA cliff!)
For ACA eligibility calculations, is:
1) HSA a legitimate MAGI deduction from AGI? i.e. $40k AGI minus $8k HSA = $32k MAGI?
2) Traditional IRA a legitimate MAGI deduction from AGI? i.e. $40k AGI minus $5,500 Traditional IRA = $34.5k MAGI?
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