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Old 09-29-2013, 02:39 PM   #61
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From what I have read, the default will be based on your 2012 or 2013 MAGI. However, if your circumstances change (ERing, for instance), you can make a case to take the subsidies up front. It all comes out in the wash when you file taxes at year end in any case.
That is what Consumer's Union says. They have brochures they made up with the simplest ACA overviews in the galaxy -

https://sites.google.com/a/consumer....edit-brochure/
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Old 09-29-2013, 03:54 PM   #62
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Originally Posted by daylatedollarshort View Post
That is what Consumer's Union says. They have brochures they made up with the simplest ACA overviews in the galaxy -

https://sites.google.com/a/consumer....edit-brochure/
Nice link. Thanks for posting it. Yes, it does appear that when we file our 2014 federal income tax return, it will reconcile any difference between the subsidy we declared we were entitled to take versus the subsidy we were actually entitled to take, kinda similar to the way our W-4 withholding form indicates how much income tax we want to have withheld versus the 1040 form indicating how much income tax was actually withheld.

At some point late next year (2014), will we have the chance to redo our declared subsidy for the following year (2015) the same way we are trying to figure it out now for 2014?
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Old 09-29-2013, 04:21 PM   #63
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If one cannot stay below MAGI threshold to qualify for Obmamcare subsidies, one could also alternate years to extract capital gains that way at least one could get Obamacare subsidies every other year. Better than nothing.
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Old 09-29-2013, 04:30 PM   #64
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We get coverage that is a much, much better than our current plan. And it's with Anthem Blue Cross, which is widely accepted. Here are the details:

Is this an exchange plan because I understand for all levels of the exchange the oop is 6300. Also the subsidy only pays at the silver level
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Old 09-29-2013, 05:45 PM   #65
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Is there anything about alternating years with and without subsidies?

Or would that arouse suspicions about an 'engineered' MAGI?

Or drastic changes in MAGI? You were employed, then you retire and your income drops way down to qualify for subsidies the very next year.

I can just imagine exposes about 'millionaires receiving ACA subsidies.' There are certainly enemies of Obamacare and these kinds of anecdotes could be used to stoke more outrage.
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Old 09-29-2013, 05:57 PM   #66
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Is this an exchange plan because I understand for all levels of the exchange the oop is 6300. Also the subsidy only pays at the silver level
I am low income and the subsidy pays the bronze for me. If I am understanding it right.
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Old 09-29-2013, 06:02 PM   #67
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Is there anything about alternating years with and without subsidies?

Or would that arouse suspicions about an 'engineered' MAGI?

Or drastic changes in MAGI? You were employed, then you retire and your income drops way down to qualify for subsidies the very next year.

I can just imagine exposes about 'millionaires receiving ACA subsidies.' There are certainly enemies of Obamacare and these kinds of anecdotes could be used to stoke more outrage.
But that is bound to happen. They made Obamacare means-tested via income and not net worth. So you are going to have cases of high net worth and low income people that will get Obamacare subsidies. Besides, the entire thread called "Withdrawal Strategies With Obamacare" seems like all about a 'engineered' MAGI.
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Old 09-29-2013, 06:06 PM   #68
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From what I have read, the default will be based on your 2012 or 2013 MAGI.
The latest I've been hearing is that they've dropped the use of past years' AGI as an estimate of 2014 MAGI for ACA purposes. They're going to rely purely on the honor system (with estimates reconciled with reality at the end of the tax year, of course.)

I guess we'll know for sure on Oct. 1.
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Old 09-29-2013, 06:15 PM   #69
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The latest I've been hearing is that they've dropped the use of past years' AGI as an estimate of 2014 MAGI for ACA purposes. They're going to rely purely on the honor system (with estimates reconciled with reality at the end of the tax year, of course.)

I guess we'll know for sure on Oct. 1.

Works for me. I have always been a scrupulously honest taxpayer, but I was not looking forward to pleading my case due to a huge drop in MAGI from one year to the next.
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Old 09-29-2013, 06:31 PM   #70
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Works for me. I have always been a scrupulously honest taxpayer, but I was not looking forward to pleading my case due to a huge drop in MAGI from one year to the next.
Yes, that is good news. We will be having an order of magnitude drop in income when we ER.
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Old 09-29-2013, 07:14 PM   #71
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The income is estimated for 2014 but verified against exsiting and/or with additional documentation if requested.

http://www.cms.gov/CCIIO/Resources/F...n-8-5-2013.pdf

Blunt Wrong on Income Verification
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Old 09-29-2013, 07:35 PM   #72
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That is what Consumer's Union says. They have brochures they made up with the simplest ACA overviews in the galaxy -

https://sites.google.com/a/consumer....edit-brochure/
What a great simple brochure. It answer my question of which tax year do we use to determine the subsidy. I also understand how the subsidies work better than the calculator.

I was more or less on track to keep my 2013 MAGI under the Hawaii limit ($52,900) I had planned to reduce my 2013 by harvesting loss, now I guess I am going to pull in income into 2013 and push out my losses to 2014.

I am thinking that that the use of Jan options maybe the best way of ensuring that you stay under the limits.
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Old 09-29-2013, 07:55 PM   #73
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So is MAGI defined as it has always been defined?

If I have $20,000 in prior losses and I sell stock with a $20,000 gain, the effect on my MAGI is $0?
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Old 09-29-2013, 08:04 PM   #74
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If one cannot stay below MAGI threshold to qualify for Obmamcare subsidies, one could also alternate years to extract capital gains that way at least one could get Obamacare subsidies every other year. Better than nothing.
+1

Reminded me of bundling deductions.
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Old 09-29-2013, 08:44 PM   #75
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I can just imagine exposes about 'millionaires receiving ACA subsidies.' There are certainly enemies of Obamacare and these kinds of anecdotes could be used to stoke more outrage.
You can be sure when the political climate is correct, they will perp walk a multi-millionaire getting health insurance for $29 (subsidized by the middle class) on the nightly news. I guess this would help open the door to net worth scrutiny.
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Old 09-29-2013, 09:00 PM   #76
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You can be sure when the political climate is correct, they will perp walk a multi-millionaire getting health insurance for $29 (subsidized by the middle class) on the nightly news. I guess this would help open the door to net worth scrutiny.
How would a journalist know who was (a) getting the subsidy and (b) a multi-millionaire. This information would have to be volunteered by the recipient although I suppose in a country of 300M someone may do this.
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Old 09-29-2013, 09:03 PM   #77
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You can be sure when the political climate is correct, they will perp walk a multi-millionaire getting health insurance for $29 (subsidized by the middle class) on the nightly news. I guess this would help open the door to net worth scrutiny.
A person can be a multi-millionaire and get medicare with no problem. They can even get the cheapest rate if their income is low enough. Their are many programs that look at income only. But don't worry to much because many times to do this the multi-millionaire would lose more income than the benefits are worth.
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Old 09-29-2013, 09:16 PM   #78
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I think it would be a good idea for those who are fired with substantial assets but still gets ACA subsidies to not crow about them.

Keep it on the down low.
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Old 09-29-2013, 09:37 PM   #79
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I think it would be a good idea for those who are fired with substantial assets but still gets ACA subsidies to not crow about them.

Keep it on the down low.
I agree with that, although it is probably ok for us to discuss on here...the gen pop who would be outraged don't for the large part manage to save or bother thinking much about retirement (and thus would not be reading anything on here).

I would be happy if they fix this "flaw" after they fix the other 18,000 things that are unfair in the tax code.
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Old 09-29-2013, 10:44 PM   #80
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The income is estimated for 2014 but verified against exsiting and/or with additional documentation if requested.

http://www.cms.gov/CCIIO/Resources/F...n-8-5-2013.pdf

Blunt Wrong on Income Verification
Those are helpful links. Thanks.
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