Possible legislation re: ACA cliff
- Thread starter Finance Dave
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OP
OP
Finance Dave
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Updated my application and picked the lowest cost Silver plan. It was only $30 a month more than my previous Bronze. Additional benefit, deductible went from $4250 to $1500.
They carried over my expenses from the Bronze plan, I've already met the Silver plan annual deductible!
You had better get in on this too before they run out of other peoples' money.
But back to my question...if I do nothing will I get a credit next year?
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
If the rules stay the same, yes. You'll get the additional difference at tax time and will be in the exact same position.
Except:
If one wants to try to position themselves as well as possible for potential tax law changes where the repayment limitations might be changed / decreased / suspended / whatever, then it could be better to get the APTC now. I guess it depends on whether the hassle of reapplying is worth the theoretical potential benefit.
There's also the theoretical NPV argument that money now is more valuable than money later, but with low interest rates and probably a low marginal utility on those extra dollars to you, that argument is probably worth a dollar or two.
The other issue is CSRs. Since those are not reconciled at tax time, if those are a factor for you then that would be another thing in favor of reapplying now.
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Finance Dave
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Thanks Second.
I'll wait it out...using the EASY BUTTON lol.
I'll wait it out...using the EASY BUTTON lol.
EastWest Gal
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We both turn 62 this year. Went onto PA's ACA site (Pennie.com) today. We are going to make a Roth conversion the next two years which would have put us over the ACA cliff, and also build up our cash reserves to stay under the ACA cliff in 2023. I just changed the Premium Tax Credit down $400. Another option would be to make larger quarterly tax payments. It took less than a minute to do. We're not going to change to a Silver Plan this year, but may do so next year. Easy-peasy.
