grasshopper
Thinks s/he gets paid by the post
- Joined
- Oct 9, 2010
- Messages
- 2,477
You may want to be careful about having too little income as you may fall off the bottom and have to go on medicaid. Not sure how this works out when you get an ACA plan and find out at the end of the year that you did not qualify for it.
In past years we made 250k+, and now in 2015, we are retired and plan about a 60k income. We put together a PDF document with a cover page that was essentially a written letter about our retirement and a summary of the 6 sources of income that we expected next year. We then created a page for each source. Some were screenshots of the mandatory distribution page in the retirement account, some were actual pages of the prior year's tax return, etc. The summary page labelled everything 1 thru 6 and each of the subsequent pages was numbered 1 - 6, so the reviewer could x-ref it back.
We just got our subsidy approval letter in the mail yesterday, so it was accepted!
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Only if you want an advance on a tax credit that you wouldn't otherwise get until you file next year's tax returns in 2016.Only the government could require something as ridiculous as "proof" of income for a year that hasn't even started yet...
If the premium subsidy received is higher than it should have been, there are caps on the repayment amount for those between 100%-400% of the Federal Poverty Level (FPL).In the end it likely won't make a difference how well your income is documented since it will all come out in the wash at tax filing time. If you've underpaid you will pay the difference and if you've overpaid you will receive a reduction in the tax you owe.
If the premium subsidy received is higher than it should have been, there are caps on the repayment amount for those between 100%-400% of the Federal Poverty Level (FPL).
https://news.leavitt.com/wp-content/uploads/2014/11/11-24-14-Cap-on-Subsidy-Repayment.pdf
Those who received a premium subsidy based on estimated income do not need to repay if their actual income falls below 100% FPL.
Consumers Whose Income Drops Below Poverty Get Break On Subsidy Payback | Kaiser Health News
If the premium subsidy received is higher than it should have been, there are caps on the repayment amount for those between 100%-400% of the Federal Poverty Level (FPL).
https://news.leavitt.com/wp-content/uploads/2014/11/11-24-14-Cap-on-Subsidy-Repayment.pdf
Those who received a premium subsidy based on estimated income do not need to repay if their actual income falls below 100% FPL.
Consumers Whose Income Drops Below Poverty Get Break On Subsidy Payback | Kaiser Health News
I,m in the same boat.I retired last year in May. I receive a subsidy from the ACA.This year they want proof of income for 2015.If I do a Roth conversion to meet the income requirements for the year, will the statement from my financial institution fulfill the proof requirement the gov.needs? Thanks.Mike.
Thanks MRG! I know what you mean.I was one of those that had a policy with CoOpportunity.I had to reapply for ins with another company since CoOp went belly up.The people at Healthcare.gov didn't know anything about it! I had to inform the person that the policy wasn't even offered on their own website anymore.I was hopeing to wait until the end of the year to create income,but I guess I'll have to do it now if I want the monthly subsidy instead of reconciling at the end of the year.Mike.
John,My premium for Jan has been paid and the one for Feb with the new ins has been set up.The letter I received from HHS says I have 60days to submit proof of income for 2015. Last year I worked 4mos before retireing ,so income proof wasn't a problem.This year I have to create it from my tax deferred account,so I guess whether I do a Roth conversion now or later isn't really a big deal. I just want to be able to get the subsidy and cost sharing every month.Mike.