NateW
Recycles dryer sheets
- Joined
- Jul 30, 2011
- Messages
- 425
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.
Last week I received a $39,000 payment, the likes of which I thought I would never see. Let me explain: 18 years ago when I divorced my first wife, she wished to remain in the marital home, but did not have enough funds to buy me out of my half of the house we jointly owned. The attorney I retained when drafting our property settlement agreement included the deficiency as a $23,000 loan to my ex, payable in 15 years in one lump sum plus 6% interest compounded annually. He also recorded at the county courthouse a lien on the house for the $23,000 plus interest.
About 4 years after our divorce my ex offered to repay $10,000 if I would sign a subordination agreement, becoming a secondary lienholder, as part of a cash out refinance. I jumped at the opportunity because I figured that was all the money I would get.
Well, last year the house went into foreclosure and was auctioned off on the courthouse steps. I considered contacting the trustee managing the sale, but a couple of people I asked who know about these matters said I was out of luck and the lien on the property was dissolved by the foreclosure.
A couple of weeks ago I get a letter from a law office stating that there may be excess funds from the auction of the house I have a lien on and asked me to forward to them the original note and a payoff statement, which I did, adjusted for the 2006 $10,000 payment I received. The law office also asked for a copy of my social security card, I assume to issue a form 1099 INT.
Before the check arrived, I asked the law office staff how much I would receive and the reply was, "All of it."
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. And if it looks incorrect I need to contact the law firm and question their amount. Does this sound correct? I did email the law firm and ask if I was getting a 1099 and if so, for how much. Haven't gotten a reply yet.
If it looks like our ACA tax credit is in jeopardy, I plan to redeem some of the no penalty CDs we have and deposit the cash in a non-intrest bearing account. I just need to know how much I have to drop our reportable income to keep our ACA credit. Does this sound like a good plan? Thanks.
Last week I received a $39,000 payment, the likes of which I thought I would never see. Let me explain: 18 years ago when I divorced my first wife, she wished to remain in the marital home, but did not have enough funds to buy me out of my half of the house we jointly owned. The attorney I retained when drafting our property settlement agreement included the deficiency as a $23,000 loan to my ex, payable in 15 years in one lump sum plus 6% interest compounded annually. He also recorded at the county courthouse a lien on the house for the $23,000 plus interest.
About 4 years after our divorce my ex offered to repay $10,000 if I would sign a subordination agreement, becoming a secondary lienholder, as part of a cash out refinance. I jumped at the opportunity because I figured that was all the money I would get.
Well, last year the house went into foreclosure and was auctioned off on the courthouse steps. I considered contacting the trustee managing the sale, but a couple of people I asked who know about these matters said I was out of luck and the lien on the property was dissolved by the foreclosure.
A couple of weeks ago I get a letter from a law office stating that there may be excess funds from the auction of the house I have a lien on and asked me to forward to them the original note and a payoff statement, which I did, adjusted for the 2006 $10,000 payment I received. The law office also asked for a copy of my social security card, I assume to issue a form 1099 INT.
Before the check arrived, I asked the law office staff how much I would receive and the reply was, "All of it."
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. And if it looks incorrect I need to contact the law firm and question their amount. Does this sound correct? I did email the law firm and ask if I was getting a 1099 and if so, for how much. Haven't gotten a reply yet.
If it looks like our ACA tax credit is in jeopardy, I plan to redeem some of the no penalty CDs we have and deposit the cash in a non-intrest bearing account. I just need to know how much I have to drop our reportable income to keep our ACA credit. Does this sound like a good plan? Thanks.
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My case isn't as painful as yours but still make it to your advantage.
