For the recently retired how do you resolve ACA wage inconsistency, big drop in MAGI

[Helen]

I was given until February 2015 to submit proof of my 2015 income. I uploaded my 2013 1040, and what I hope is proof that my spouse and I are no longer employed. I then included a cover letter stating we were not employed and that our only income for 2015 would be from dividends and interest only and I included the estimated amount which was close to what it was in 2013.

I sent it early enough so that if it doesn't satisfy them I can include end of year brokerage statements for 2014.

My approach was to take the easy way first and see if they will accept it.

 

[scrabbler1]

The NY Marketplace was never satisfied with my 2014 income estimates I sent them. I sent them my 2013 year ending statements and I got a letter every month from them telling me the information I sent them was inadequate or insufficient or something like that. My type of income (dividends and cap gain distributions) was not among the types of income listed. I wasn't seeking an advance premium subsidy so I didn't care much; I'd figure everything out at the end of the year.


I finally called the Marketplace in April or May and told the rep what was going on. He told me to ignore the letters and they would probably stop coming after a while (they did stop). As long as they send out a Form 1095-A which verifies that I bought a policy through the Marketplace that will be fine. That makes me eligible for the subsidy I will calculate on my 2014 federal income tax return to offset some of my taxes due, as I had no taxes withheld, only some estimated taxes paid.


I won't bother sending them any year-ending 2014 statements because, once again, I won't be seeking any advance premium subsidy. My main goal is to make sure my income stays below ~$46,000 so I continue to qualify for a subsidy. I barely qualified for one for 2014 because I some unexpected cap gains distributions in December which used up most of my income cushion.

 

[25ring]

Thought I'd give an update. Called Vanguard to do a Roth conversion.Told the rep what I was trying to accomplish with the ACA.He started laughing and said that he was right behind me in age [59] and looking to do the same himself.Healthcare.gov while polite,don't really seem to know anything other than what's written down in front of them.Hopefully my conformation statement along with a cover letter will satisfy their 2015 income proof.Stay tuned,Mike.

 

[Tom52]

Since I originally asked the questions I thought I would give an update...on January 7, I mailed as much documentation as I had available to verify my expected 2015 MAGI. As suggested I sent a cover letter detailing the various types of anticipated incomes, with referenced attachments. In all there was probably 30 pages so I did not think I would have much success trying to pdf. a file that large and then attempt to upload it to healthcare.gov as some here have indicated worked for them.

I found it strange that instructions said that to be accepted, supporting documents must include the home address as well as our name. Many of the documents including statements from Vanguard and Ameriprise do not show our home address. I hope this does not become a problem.

I will give an update as soon as I hear back from Dept. of Health & Human Services.

I retired in 2014 and had employee health insurance for most of the year, however, I will be without health insurance starting January 1, 2015. So this is my first experience with ACA.

I applied for subsidized ACA health insurance for 2015 and used a guestimate of 2015 MAGI of $33,000. I will have no W-2 wages in 2015. My income will come from a combination of 1099 income, and an inherited annuity. It is difficult to document all of this estimated 2015 MAGI because more than half of the $33,000 will be coming from assets via inheritance received mid 2014.

I received a letter from Dept. of Health and Human Services advising that I needed to document my estimated MAGI number, ($33,000) by mid February. Consequence of not completing this is a loss of a substantial subsidy. I may or may not have some of the 1099s that I could submit, but for the majority of the MAGI number I will not have any formal documentation to verify income. I understand that 1099s etc are not required to be sent before mid February.

I can document loss of W-2 but how do I quantify where other income comes from? About 2/3 of the $33,000 was not in my possession till the second half of 2014 and therefore did not appear on my 2013 tax return.

Anyone have any ideas what form of income documentation will be acceptable to Health and Human Services so that I can maintain my subsidy?

 

[Sue J]

Today I got an email from HealthCare.gov that I have a message waiting on my account. I logged in and it's the 1095-A form. It's got all the info needed to file taxes.

FYI, the last 2 pages are how to get help in other languages, so you don't need to print them.

 

[NoMoreJob]

I like your motto Tom52!

 

[Tom52]

I got my letter from Health and Human Services yesterday. My projected 2015 income has been accepted. One less thing to worry about, but I was also recently advised that the insurance company I purchased thru the ACA is in receivership so I will now have to change to a different insurer to be eligible for the subsidy. Problem is there is only one remaining insurer that offers insurance thru healthcare.gov. Now, to pour salt in the wound there is only one HSA eligible plan. It is a bronze plan. Checked for doctors within 20 miles of my zip code and find there are none.

I am really disappointed in this whole process so far.

Since I originally asked the questions I thought I would give an update...on January 7, I mailed as much documentation as I had available to verify my expected 2015 MAGI. As suggested I sent a cover letter detailing the various types of anticipated incomes, with referenced attachments. In all there was probably 30 pages so I did not think I would have much success trying to pdf. a file that large and then attempt to upload it to healthcare.gov as some here have indicated worked for them.

I found it strange that instructions said that to be accepted, supporting documents must include the home address as well as our name. Many of the documents including statements from Vanguard and Ameriprise do not show our home address. I hope this does not become a problem.

I will give an update as soon as I hear back from Dept. of Health & Human Services.

 

[25ring]

I got my letter from Health and Human Services yesterday. My projected 2015 income has been accepted. One less thing to worry about, but I was also recently advised that the insurance company I purchased thru the ACA is in receivership so I will now have to change to a different insurer to be eligible for the subsidy. Problem is there is only one remaining insurer that offers insurance thru healthcare.gov. Now, to pour salt in the wound there is only one HSA eligible plan. It is a bronze plan. Checked for doctors within 20 miles of my zip code and find there are none.

I am really disappointed in this whole process so far.

Oh boy! Another CoOpportunity policy holder like me! Good thing I'm retired because this is turning into a full time job.

 

[2retireearly]

I went through this confusion last year as I retired 12/2013. What i did was this in 2014, to prove my subsidy need: I downloaded (and mailed) my Congrats on your Retirement Letter from my Employer. And I downloaded (and mailed) the small amount ($25k) I removed from my 401k (I could remove as I retired at 57). So for 2014 25k was my taxable income (I used cash for the rest of my living expenses). That was approved. All was good. For this year, 2015, I just downloaded (and mailed) the document showing 25K from my 401k as my taxable income...as also I will use cashfor the rest of my living expenses. That's is. (for the person who asked about his ROTH..that isnt taxable income, so do not show them this!). Only show your taxable income..not what you have used to live. All pretty easy...

 

[25ring]

I went through this confusion last year as I retired 12/2013. What i did was this in 2014, to prove my subsidy need: I downloaded (and mailed) my Congrats on your Retirement Letter from my Employer. And I downloaded (and mailed) the small amount ($25k) I removed from my 401k (I could remove as I retired at 57). So for 2014 25k was my taxable income (I used cash for the rest of my living expenses). That was approved. All was good. For this year, 2015, I just downloaded (and mailed) the document showing 25K from my 401k as my taxable income...as also I will use cashfor the rest of my living expenses. That's is. (for the person who asked about his ROTH..that isnt taxable income, so do not show them this!). Only show your taxable income..not what you have used to live. All pretty easy...

Just received my letter from HHS stating that no further action is needed.My Roth conversion confirms my eligibility for income for 2015. A Roth withdrawl isn't taxable but a Roth conversion from an TIRA is. FWIW --Mike

 

[sherrywilliam]

I am having a hell of a time with aca. I submitted all document online, got a notice in mail I needed to send documentation a month ago, I called them asking what is up because I submitted the unemployment determination(mind you the only income we have for 2015) and said oh it didn't work online so I asked is sending that in mail enough, they said yes.

Okay last week I got another notice in the mail to send documents again so I called and talked to aca by phone, once again they said the unemployment determination should be enough but maybe send a bank statement.

Sent it again but loaded it with pdf letter, that was suggested on here with explanation, interest on cds (but last years interest) numerous pay stubs from unemployment. The letter I sent said I would be taking money from a ira, but haven't yet. Then I also uploaded all these documents online.

Also I asked the aca by phone, can I talk to this documents dept that sends these out. She said that no they don't have the capabilities of that yet. I might be forced to take a distribution from ira earlier than I planned just so I can send that as more proof of income.

Yes I do want the subsidy per month that they are giving me, instead of when I file next year taxes. It amounts to 12000 dollars that I don't want to have the irs keep ahead of time

Fingers crossed this time it works. Will call end of this work and see if I made any progress