At Risk of Losing ACA Insurance Credit Due to Receipt of Windfall

[GTFan]

So ... you are receiving enough money that you could afford to pay your full insurance bill but you are looking for a way to get the taxpayers of the country to continue paying instead? Just checking my understanding.

Oh please, just stop. The IRS has been using taxpayer money to give dead people their stimulus checks, over a billion worth so far.

Gaming ACA is just a drop in the bucket compared to stuff like that, or people gaming unemployment at $600/wk. etc.

 

[Rianne]

So ... you are receiving enough money that you could afford to pay your full insurance bill but you are looking for a way to get the taxpayers of the country to continue paying instead? Just checking my understanding.

Wow, I thought corporations and million/billionaires controlled that market. Didn't think it trickled down to silly little middle class taxpayers.

 

[MRG]

Wow, I thought corporations and million/billionaires controlled that market. Didn't think it trickled down to silly little middle class taxpayers.

Well you know someone might get a break opposed to large corporations paying zip in taxes. Definitely shame the individual, support the company. After all the company is just taking advantage of the tax code.

 

[Rianne]

After all the company is just taking advantage of the tax code.

I hesitate to be snarky. Your point well taken. Corps/billionaires employ departments of attorneys, CPA's to make sure they are doing their due diligence according to law and get every tax break legally known to man. Do I feel guilty for a healthcare subsidy so I don't go bankrupt with an illness? I don't think so. If I go bankrupt, end up on medicaid and my debts forgiven...who do you think pays for that?

 

[COcheesehead]

I think what hits me between the eyes is there is a specific tax that pays for the subsidy. If a corporation uses the tax laws to avoid higher taxation, we all pay for that. If someone games their income to avoid higher health care insurance, only higher cap gains folks pay for that.

So I take a risk, buy real estate, sit on it, pay property taxes, up keep, etc. It appreciates. Now I sell and I have to pay 20% cap gains, plus state PLUS a 3.8% ACA tax to cover all the folks taking the subsidy.

Why am I taxed? Someone once replied to that same question with “why do robbers rob banks?” Cuz that’s where the money is. LOL.

 

[Clone]

Just shooting from the hip here- but depending on your tax status, and if you make charitable deductions, you could open a DAF and get a deduction for that. Also, if you have made any IRA withdrawals in the last 60 days, you could reverse those and deposit them back. I thought some of that 60 days might have been extended, but maybe not. If you have any type of a business, a capital expense could be Sec 179'd. I have some farm income, so I can make a decision late in the tax game to expense a purchase or to depreciate it over a number of years.

 

[OldShooter]

I think what hits me between the eyes is there is a specific tax that pays for the subsidy. If a corporation uses the tax laws to avoid higher taxation, we all pay for that. If someone games their income to avoid higher health care insurance, only higher cap gains folks pay for that.

So I take a risk, buy real estate, sit on it, pay property taxes, up keep, etc. It appreciates. Now I sell and I have to pay 20% cap gains, plus state PLUS a 3.8% ACA tax to cover all the folks taking the subsidy.

Why am I taxed? Someone once replied to that same question with “why do robbers rob banks?” Cuz that’s where the money is. LOL.

Well, Porky will probably be along soon, but to elaborate slightly: There is no bright line between legal maneuvers that are reasonable and those that are ethically marginal. "Everybody does it." or "Those other guys are worse." are IMO not applicable defenses in an ethics discussion. Actually, I think the one that is far more expensive is the legal asset stripping that is done so the taxpayers will cover Grandma's nursing home bills. End of elaboration.

 

[MichaelB]

After discussion the moderator team has chosen to close this thread. The OP original question has been answered and the discussion is now becoming a general rant on taxes.