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I was assuming they would write the check for the "full monthly premium" then basically be rebated the money at tax time as a credit on the 1040. Was I wrong?
The subsidy reduces the amount you pay each month.
It's a tax credit. Accessing it early wouldn't be possible unless everyone could access all their tax credits early according to the Constitution's equal protection clause.
Seeing as how the top 10% of earners in this country pay 70% of the taxes, I don't get the logic of your statement.
Sure, because they make so very much more money.
The poor pay higher rates than the rich - state and local:
"Payroll taxes aren't progressive, for example. In fact, they're actively regressive, with the poor and middle classes paying higher rates than the rich." Soaking the Poor, State by State | Mother Jones
The poor pay higher rates than the rich - state and local:
"Payroll taxes aren't progressive, for example. In fact, they're actively regressive, with the poor and middle classes paying higher rates than the rich." Soaking the Poor, State by State | Mother Jones
The subsidy reduces the amount you pay each month.
And you are sure about that? Because it is referred to as a tax credit.
If it is a matter of reducing payment every month, then folks are going to claim it even if they make more money than the qualifying amounts.
I can't imagine that the IRS will let that slip by . . .
I would very much appreciate some link showing that folks are going to write out checks equal to the subsidized amount instead of writing out premiums for the full amount - and getting a tax credit.
It's a tax credit. Accessing it early wouldn't be possible unless everyone could access all their tax credits early according to the Constitution's equal protection clause.
So you are saying my premise is correct - you pay the full amount every month and then when you do your taxes, you will be able to claim that credit.
Location: Just transplanted to FL from the N GA mountains
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This is why I can't figure out how it is going to be considered a credit on the 1040. Either folks will have to write a check for the whole monthly (which ya'll have said isn't going to happen).. and you would get the credit (as a paid on your behalf section of the 1040). Basically an EIC credit which would rebate that money back.
If you only write the check for your part.. then basically in order for the insurance co. to get their money, the government will basically have to "write a check" to the insurance company. Now whether they'll do this on a 30/60/90 day net who knows? But then.... why would anyone get a credit on their tax form... There has been no expense to the taxpayer to have credit for? Unless they then will get a rebate... which in fact would be double dipping the till. Once to the Ins. company and once to the taxpayer.
The other option would be to make the premiums paid by the consumer deductible... thus lowering taxable income, but that would mean everyone getting a subsidy would most likely have to itemize right? So that won't work... HHHmmm...
Strange........
This is why I can't figure out how it is going to be considered a credit on the 1040. Either folks will have to write a check for the whole monthly (which ya'll have said isn't going to happen).. and you would get the credit (as a paid on your behalf section of the 1040). Basically an EIC credit which would rebate that money back.
If you only write the check for your part.. then basically in order for the insurance co. to get their money, the government will basically have to "write a check" to the insurance company. Now whether they'll do this on a 30/60/90 day net who knows? But then.... why would anyone get a credit on their tax form... There has been no expense to the taxpayer to have credit for? Unless they then will get a rebate... which in fact would be double dipping the till. Once to the Ins. company and once to the taxpayer.
The other option would be to make the premiums paid by the consumer deductible... thus lowering taxable income, but that would mean everyone getting a subsidy would most likely have to itemize right? So that won't work... HHHmmm...
Strange........
You are thinking the same things I am!
I will see if I can find an explanation on all this b/c I have looked and so far, all I can find is charts showing what the salary qualifications (by number of people in family) . . . but no clearly defined statement saying . . . you won't have to pay that high premium every month.
Note that if you have qualified to receive an advanced premium tax credit, the government will pay the credit directly to your insurer and you will pay the remainder of the premium directly to the insurer.
So . . . are all the subsidies "advanced premium tax credits?"
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