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How to model impact to health insurance subsidy?
12-11-2017, 08:01 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Posts: 1,440
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How to model impact to health insurance subsidy?
Day 2 in modeling taxes for next year.
New question - how do I determine how the sell of various amounts of mutual funds will impact our healthcare subsidy?
I've found the Kaiser subsidy calculator but it is wildly inaccurate on how much our current subsidy is so I don't trust the numbers.
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12-11-2017, 08:46 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,596
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Use the actual ACA site to adjust your income and see the results on subsidies.
https://www.healthcare.gov/see-plans/
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12-11-2017, 08:48 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,596
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Quote:
Originally Posted by Lisa99
Day 2 in modeling taxes for next year.
New question - how do I determine how the sell of various amounts of mutual funds will impact our healthcare subsidy?
I've found the Kaiser subsidy calculator but it is wildly inaccurate on how much our current subsidy is so I don't trust the numbers.
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Note that dividends and capital gains may not increase your actual tax liability, but they definitely affect your subsidies. Be very careful about controlling the amount of cap gains and don't even get close to the cliff (around 65000 MAGI for a married couple)
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12-11-2017, 08:50 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Posts: 1,440
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Thank you, I looked everywhere for that info on the site and couldn't find it.
__________________
Learning how to be still, to really be still and let life happen - that stillness becomes a radiance -
Morgan Freeman
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12-11-2017, 11:11 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,046
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You need to find the second lowest cost Silver plan (SLCSP) benchmark in your county. Then the percentage of your income to FPL.
Up to 133% of FPL 2.04% of your income
133%-150% of FPL 3.06%-4.08% of your income
150%-200% of FPL 4.08%-6.43% of your income
200%-250% of FPL 6.43%-8.21% of your income
250%-300% of FPL 8.21%-9.69% of your income
300%-400% of FPL 9.69% of your income
$24,120 income, family of 1 = 200% FPL
So an income of 200% FPL will be at 6.43%. The SLCSP monthly premium is $350.
Premium Tax Credit (PTC) = ($350 x 12 = $4,200) - ($24,120 * 6.43% = $1,550.92) = ($2,649.08 / 12 = $220.76) $220.76 is the monthly PTC
Adjust income and apply formula accordingly.
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12-11-2017, 11:23 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,184
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If you look at the form 8962 instructions, you'll find the table used for the multiplier for your MAGI, to come up with your expected contribution. For 300-400% FPL it's 0.0966, so every $100 of extra income costs you $9.66 of subsidy. Below 300% it's a little less. Above 400%, you're over the cliff and the whole subsidy is gone. In some cases you can get low enough that your contribution is less than your full premium, in which case extra income does not hurt you at all, until it gets above that amount.
Not sure if that table will stay the same for 2018, but I think that part of the equation does.
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