Join Early Retirement Today
Closed Thread
 
Thread Tools Search this Thread Display Modes
Old 07-03-2020, 07:56 PM   #21
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 4,033
Quote:
Originally Posted by pb4uski View Post
Only if one believes that a family of 2 with income of $45k or $64k can afford to spend $20k.... 44% or 31% of their income on health insurance. Any other silly questions?
Not reflective of the OP, is it?
COcheesehead is offline  
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!

Old 07-03-2020, 07:57 PM   #22
Recycles dryer sheets
NateW's Avatar
 
Join Date: Jul 2011
Posts: 391
Quote:
Originally Posted by SALTedOut View Post
Is your insurance plan a high deductible plan? If so you could contribute to an HSA and get up to a $7,100 deduction. I'd confirm first that that reduces the income used for subsidies.
SALTedOut, no our medical insurance is not a high deductible plan or HSA.
NateW is offline  
Old 07-03-2020, 08:00 PM   #23
Recycles dryer sheets
NateW's Avatar
 
Join Date: Jul 2011
Posts: 391
Quote:
Originally Posted by youbet View Post
OP, your thread title is misleading. You don't seem to be at risk for loosing your ACA insurance. Maybe the subsidy, but not the insurance.
Yes, you are correct youbet. I should have used "subsidy" in the title. Thanks for noting that.
NateW is offline  
Old 07-03-2020, 08:07 PM   #24
Recycles dryer sheets
NateW's Avatar
 
Join Date: Jul 2011
Posts: 391
Quote:
Originally Posted by RetiredAndLovingIt View Post
This chart might help to figure out the MAGI calculation for 2020.

http://laborcenter.berkeley.edu/pdf/2019/magi.pdf
Thank you RetiredAndLovingit, this is very helpful.
NateW is offline  
Old 07-04-2020, 01:00 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,138
Quote:
Originally Posted by pb4uski View Post
Only if one believes that a family of 2 with income of $45k or $64k can "afford" to spend $20k.... 44% or 31% of their income on health insurance. More than the 30% sometimes spent on housing.

BTW, that $20k doesn't include what the OP is paying to the health insurer. Any other silly questions?
Quote:
Originally Posted by COcheesehead View Post
Not reflective of the OP, is it?
Looks it to me. From what the OP wrote their income is normally about $45k and with this windfall will be $20k higher... or $65k.

Since at $45k of income they get a $20k ACA subsidy, then their premiums have to be at least $20k and probably more. So their if no subsidy then their premiums would be 44% or 31% of their income depending on which income number you use.

What are you seeing that is so different?

Quote:
Originally Posted by NateW View Post
DW and I purchase medical insurance through the Insurance Exchange under the Affordable Care Act and have elected to apply our approximately $20,000 yearly credit through reduced premiums. We expected our reportable income to be about $45,000 from DW's SS and CD interest.

... I assume for the 1099 INT I receive from the law firm to be correct, the amount has to be for interest only and not include any amount for principle. The loan balance following the 2006 payment was about $19,000. Thus the 1099 INT should not be for more than about $20,000. ...
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is offline  
Old 07-05-2020, 08:33 AM   #26
Thinks s/he gets paid by the post
GTFan's Avatar
 
Join Date: Apr 2013
Location: Atlanta
Posts: 1,064
Quote:
Originally Posted by OldShooter View Post
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.
GTFan is offline  
Old 07-05-2020, 08:58 AM   #27
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 3,456
Quote:
Originally Posted by OldShooter View Post
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.
__________________
"If you want to go fast, go alone. If you want to go far, go together.
Rianne is offline  
Old 07-05-2020, 09:25 AM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
 
Join Date: Apr 2013
Posts: 9,823
Quote:
Originally Posted by Rianne View Post
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.
MRG is offline  
Old 07-05-2020, 09:40 AM   #29
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 3,456
Quote:
Originally Posted by MRG View Post
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?
__________________
"If you want to go fast, go alone. If you want to go far, go together.
Rianne is offline  
Old 07-05-2020, 11:22 AM   #30
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 4,033
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.
COcheesehead is offline  
Old 07-05-2020, 11:53 AM   #31
Full time employment: Posting here.
 
Join Date: Jul 2013
Posts: 953
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.
__________________
Well it's all right, we're heading to the end of the line...
Clone is offline  
Old 07-05-2020, 12:04 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,507
Quote:
Originally Posted by COcheesehead View Post
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.
OldShooter is offline  
Old 07-05-2020, 02:08 PM   #33
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Sheltered in place
Posts: 34,406
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.
MichaelB is offline  
Closed Thread


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Credit where credit’s due—SSA and Medicare Accidental Retiree FIRE and Money 2 08-06-2019 08:54 PM
Credit Card Receipt Disposal ownyourfuture Other topics 40 01-15-2019 12:17 PM
Medicare - giving g'ment credit when credit due TrvlBug Health and Early Retirement 3 12-13-2018 10:46 AM
Ok... Which one of you dropped your ATM Receipt? chinaco FIRE and Money 29 07-03-2011 10:17 PM
airborne--get back up to $60 bucks no receipt - sept 15 deadline lazygood4nothinbum Other topics 2 03-04-2008 07:27 PM

» Quick Links

 
All times are GMT -6. The time now is 11:24 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.