How to model impact to health insurance subsidy?

[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.

 

[VanWinkle]

Use the actual ACA site to adjust your income and see the results on subsidies.

https://www.healthcare.gov/see-plans/

 

[VanWinkle]

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.

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)

 

[Lisa99]

Thank you, I looked everywhere for that info on the site and couldn't find it.

 

[jim584672]

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.

 

[RunningBum]

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.