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I plan to retire in the middle of 2020 and expect my income to exceed the limit to be eligible for ACA premium tax credit. I will be able to manage my income level for eligibility starting in 2021.
Will I qualify for the tax credit starting in 2021 or will I need to wait longer?
Yes 2021, just ensure your income stays below the max levels.
If I recall the question will be asked, what will be your income for 2021, not prior year income.
I vaguely remember that eligibility for the upcoming year is based on the income for the current year. This was my understanding in 2018. I decided to look into it again in the past few days but could not find anything.
If correct, I will work through June of 2020, use COBRA for the rest of the year, and take advantage of ACA tax credit starting in 2021.
I vaguely remember that eligibility for the upcoming year is based on the income for the current year. This was my understanding in 2018. I decided to look into it again in the past few days but could not find anything.
If correct, I will work through June of 2020, use COBRA for the rest of the year, and take advantage of ACA tax credit starting in 2021.
We are now doing enrollments for January 2020, so we are looking predicted income for 2020, not at what was made in 2019 anymore (I work in a NY Health Exchange call center). We stopped looking at 2019 income on November 15, because that is the last day to enroll for a 2019 start date (December 1).
Thank you ContraPagan for further confirming that the premium tax credit is not impacted by income from previous years.
I was not aware that states have Health Exchange call centers so this is great to know.
Yeah, we look at CURRENT year income. If you are self-employed and think your current year's income will be about the same the last year's you can use last year's figure off your 1040, and submit that 1040 and Schedule 1 if you are asked for proof of income documents. After November 15 we stop enrolling for current year (December 1 start date) and thus, stop looking at current year income.
NY is one of the states that has its own Exchange. We have several call centers throughout the state. I don't actually work for the State, I work for a company that contracts with the DOH to provide the manpower to process the phone calls.
To be clear I assume by "CURRENT year income" we are referring to the year for which I am seeking ACA insurance with premium tax credit.
I will retire in the middle of 2020. Even though I'd have only partially worked, my income will exceed the tax credit threshold, hence I'll go through Cobra for the remainder of 2020.
I can set my 2021 income at any level I choose, say $50k for a family of three, using a combination of cash and taxable income, e.g., stock dividends.
My understanding of response from BOBNCHI was that I'd qualify for tax credit in 2021. And I initially thought that ContraPagan said the same but the reference to "CURRENT year income" is casting doubt in my understanding.
To be clear I assume by "CURRENT year income" we are referring to the year for which I am seeking ACA insurance with premium tax credit.
I will retire in the middle of 2020. Even though I'd have only partially worked, my income will exceed the tax credit threshold, hence I'll go through Cobra for the remainder of 2020.
I can set my 2021 income at any level I choose, say $50k for a family of three, using a combination of cash and taxable income, e.g., stock dividends.
My understanding of response from BOBNCHI was that I'd qualify for tax credit in 2021. And I initially thought that ContraPagan said the same but the reference to "CURRENT year income" is casting doubt in my understanding.
You will qualify in 2021. You’re just estimating your income before the year starts. If your income during that year (current year - 2021) exceeds your estimate, you’re either suppose to update them, or just be prepared to pay back subsidies you got that you didn’t qualify for when you file Your 2021 taxes.
To be clear I assume by "CURRENT year income" we are referring to the year for which I am seeking ACA insurance with premium tax credit.
I will retire in the middle of 2020. Even though I'd have only partially worked, my income will exceed the tax credit threshold, hence I'll go through Cobra for the remainder of 2020.
I can set my 2021 income at any level I choose, say $50k for a family of three, using a combination of cash and taxable income, e.g., stock dividends.
My understanding of response from BOBNCHI was that I'd qualify for tax credit in 2021. And I initially thought that ContraPagan said the same but the reference to "CURRENT year income" is casting doubt in my understanding.
Basically, if the enrollment starts in 2019, we look at 2019 income. We're not enrolling for 2019 anymore, we are enrolling for 2020, so people need to put their projected annual income for 2020 on the application. We stopped enrolling for 2019 as of November 15.
If your income during that year (current year - 2021) exceeds your estimate, you’re either suppose to update them, or just be prepared to pay back subsidies you got that you didn’t qualify for when you file Your 2021 taxes.
And if you are one dollar over your estimate, you will have to pay back subsidies and then some!
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