ACA Federal Tax Credits

[xdafly]

Keep in mind also that HSA contributions, IRA contributions, reduce MAGI (essentially the number on bottom row of Page 1 of your annual 1040 Form).

So, as a simple&rough example, assume W-2 income + Interest totals 25,000 for a household of 2 adults and they contributed 3000 to traditional IRA and 1000 to an HSA, then MAGI would be 21,000 and they would qualify for almost nill monthly payment within a Silver Plan which would include a Tax Subsidy AND it would also include a Cost sharing reduction with a modest annual max deduction.

 

[Smitty700]

Keep in mind also that HSA contributions, IRA contributions, reduce MAGI (essentially the number on bottom row of Page 1 of your annual 1040 Form).

So, as a simple&rough example, assume W-2 income + Interest totals 25,000 for a household of 2 adults and they contributed 3000 to traditional IRA and 1000 to an HSA, then MAGI would be 21,000 and they would qualify for almost nill monthly payment within a Silver Plan which would include a Tax Subsidy AND it would also include a Cost sharing reduction with a modest annual max deduction.

One clarification on IRA contributions: only deductible IRA contributions reduce MAGI. Roth IRA and non-deductible regular IRA contributions do not reduce MAGI.

 

[bingybear]

Keep in mind also that HSA contributions, IRA contributions, reduce MAGI (essentially the number on bottom row of Page 1 of your annual 1040 Form).

So, as a simple&rough example, assume W-2 income + Interest totals 25,000 for a household of 2 adults and they contributed 3000 to traditional IRA and 1000 to an HSA, then MAGI would be 21,000 and they would qualify for almost nill monthly payment within a Silver Plan which would include a Tax Subsidy AND it would also include a Cost sharing reduction with a modest annual max deduction.

not sure if this is high enough in a state with expanded medicaid. In that case you may end up on medicaid.

Don't forget adding back tax exempt income, capital gains, and dividends.

 

[pb4uski]

Yes, according to the Kaiser calculator for US average, $21k income, 2 adults:

RESULTS
If Your State Decides to Expand Medicaid

States have the option to expand Medicaid coverage to everyone under 138% of the poverty level. If a state expands Medicaid, most of the costs are covered by the federal government under the health reform law. If your state decides to expand Medicaid, your income will make you eligible for the program. Medicaid coverage varies from state to state, but out-of-pocket costs are generally very low. Tobacco use is never taken into account in Medicaid eligibility.

If Your State Decides Not to Expand Medicaid

If your state decides not to expand Medicaid, you or some members of your family may still be eligible for coverage, depending on your state’s eligibility criteria. Visit Healthcare.gov, your state’s Health Insurance Marketplace or Medicaid office for more information.

You may be eligible for financial assistance through the Health Insurance Marketplace. Financial assistance is only available to people with incomes between 100% and 400% of the poverty level. The information below is an estimate of what you would pay for subsidized Marketplace coverage in 2016:

• Estimated financial help: $562 per month ($6,748 per year)
  as a premium tax credit. This covers 94% of the monthly costs.
• Your cost for a silver plan: $36 per month ($426 per year) in premiums (which equals 2.03% of your household income).
• The most you have to pay for a silver plan: 2.03% of income for the second-lowest cost silver plan
• Without financial help, your silver plan would cost: $598 per month ($7,174 per year)

 

[MichaelB]

To be precise, the FPL for 2016, which will be used for 2017 ACA premium assistance, is $16020 for a family of two (source here). If OP lives in a Medicaaid expansion state they would need MAGI of 138% of that number, or $22107, to be eligible for premium assistance on the exchange. If they live in a non-expansion state, they would need just the $16020. As pb4uski highlighted, at those levels of income they also would be eligible for cost sharing.

 

[ivinsfan]

And of course, depending on your state, at a certain age if you go on Medicaid they will file a lien against your estates for payment upon your demise.