|
Health Exchange Income Verification
10-25-2013, 10:56 AM
|
#1
|
Recycles dryer sheets
Join Date: May 2013
Posts: 307
|
Health Exchange Income Verification
Anybody know how income verification is going to work when your income is dramatically different from 2013 to 2014? My MAGI is going to drop by over 80% due to ER. When I show them them one of my pay stubs from 2013, they are going to tell me I don't qualify for subsidies.
I suspect I may just have to pay full price for exchange coverage and then when real numbers are in, get a 9K refund on my taxes for 2014. I don't really like the idea of loaning my crazy uncle that much money for a year.
__________________
Retired Jan 2014 at 48.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
10-25-2013, 11:37 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 3,361
|
Quote:
Originally Posted by gozer
Anybody know how income verification is going to work when your income is dramatically different from 2013 to 2014? My MAGI is going to drop by over 80% due to ER. When I show them them one of my pay stubs from 2013, they are going to tell me I don't qualify for subsidies.
I suspect I may just have to pay full price for exchange coverage and then when real numbers are in, get a 9K refund on my taxes for 2014. I don't really like the idea of loaning my crazy uncle that much money for a year.
|
Of course thanks to Uncle Ben you won't loose much in the way of interest, (about .5% on a 6 month CD for example). so the issue is just the principal and the cash flow.
|
|
|
10-25-2013, 11:38 AM
|
#3
|
Recycles dryer sheets
Join Date: May 2013
Posts: 307
|
Quote:
Originally Posted by meierlde
Of course thanks to Uncle Ben you won't loose much in the way of interest, (about .5% on a 6 month CD for example). so the issue is just the principal and the cash flow.
|
I think the issue is how much do I trust my crazy uncle sam.
__________________
Retired Jan 2014 at 48.
|
|
|
10-25-2013, 11:46 AM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
|
Quote:
Originally Posted by gozer
Anybody know how income verification is going to work when your income is dramatically different from 2013 to 2014? My MAGI is going to drop by over 80% due to ER. When I show them them one of my pay stubs from 2013, they are going to tell me I don't qualify for subsidies.
I suspect I may just have to pay full price for exchange coverage and then when real numbers are in, get a 9K refund on my taxes for 2014. I don't really like the idea of loaning my crazy uncle that much money for a year.
|
I assume you could adjust withholding or estimated taxes to make it come out even or at least smaller.
|
|
|
10-25-2013, 11:58 AM
|
#5
|
Recycles dryer sheets
Join Date: Oct 2013
Posts: 204
|
I had the same issue. I uploaded a copy of my estimated pension calculation that I got from Megacorp effective Feb 2014. That was 2 days ago and that last item seems to be the one it's thinking about (or choking on) as I can't get it to move past that point.
It has to be better than most estimates they get from small business owners. Now, they just have to trust that I will do it. But , doing it has a lot to do with the subsidy that I should get.
|
|
|
10-25-2013, 12:07 PM
|
#6
|
Recycles dryer sheets
Join Date: May 2013
Posts: 307
|
Quote:
Originally Posted by Nunthewiser
I had the same issue. I uploaded a copy of my estimated pension calculation that I got from Megacorp effective Feb 2014. That was 2 days ago and that last item seems to be the one it's thinking about (or choking on) as I can't get it to move past that point.
It has to be better than most estimates they get from small business owners. Now, they just have to trust that I will do it. But , doing it has a lot to do with the subsidy that I should get.
|
Did you get any chance to enter an explanation or was it just upload the documents and go?
__________________
Retired Jan 2014 at 48.
|
|
|
10-25-2013, 12:43 PM
|
#7
|
Recycles dryer sheets
Join Date: Oct 2013
Posts: 204
|
No, just upload and go, but I had the wit (I guess) to handwrite on the estimate what I was doing and how to make the monthly figure go to the annualized one they wanted.
Still waiting...
|
|
|
10-25-2013, 12:46 PM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
It may depend on your circumstance. For me it knew my tiny little post office income. I had to estimate my wife's church income for 2013 and 2014. It already knew I didn't have income from my last Megacorp (laid off April 2013).
We're already thinking about that for NEXT year, and how to track it going forward. My work, sparse as it is, is still variable as some of my work is filling in for sick leave, vacations and other outages as needed. That said, if I'm working more than expected and we start getting near a significant "cliff" I plan to massively crank up the pre-tax withholding for my wife's 403B to make sure we don't drive over it.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
10-25-2013, 12:47 PM
|
#9
|
Recycles dryer sheets
Join Date: May 2013
Posts: 307
|
Quote:
Originally Posted by Nunthewiser
No, just upload and go, but I had the wit (I guess) to handwrite on the estimate what I was doing and how to make the monthly figure go to the annualized one they wanted.
Still waiting...
|
I guess I'll give that a try and include a letter from HR that states my employment end date.
__________________
Retired Jan 2014 at 48.
|
|
|
10-25-2013, 01:53 PM
|
#10
|
Recycles dryer sheets
Join Date: Oct 2013
Location: Seattle
Posts: 65
|
Someone may already have posted a link to this page at KFF, Frequently Asked Questions | The Henry J. Kaiser Family Foundation but it has a lot of helpful information. We are in the same boat, RE in December 2013.
"What if I don’t know what my income will be next year?
When you apply for the premium tax credit, you will be asked to estimate your expected income for the upcoming year. Often a good place to start is to consider what your income is this year, or what income you reported on your tax return last year. However, if your circumstances have changed since then, for example, if you recently lost your job, you should make your best estimate of what your income will be next year. The health insurance marketplace will compare your income estimates against records at the Internal Revenue Service, Social Security Administration and other sources. If your estimate and official records don’t match, but you meet all other eligibility requirements, you will be asked to provide documentation to support your income projections.
If you don’t have that documentation handy, the Marketplace will provide subsidies for up to 90 days while you gather and submit your documentation for verification. It is very important that you provide any documentation requested by the Marketplace in a timely manner; if you don’t your subsidies might be reduced or terminated."
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|