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More news on the 2020,2021 &2022 cliff
03-06-2021, 06:33 PM
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#61
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Recycles dryer sheets
Join Date: Sep 2006
Posts: 151
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More news on the 2020,2021 &2022 cliff
From https://www.medpagetoday.com/infecti.../covid19/91512
Bold is mine
The bill would also eliminate a "subsidy cliff" that stops subsidies abruptly for people with incomes over 400% of the poverty level, and instead would continue the subsidies beyond the 400% level, limiting the percentage of income those higher earners pay toward their premium to 8.5%, resulting in a gradual decrease in the subsidy as income rises, she said in a phone call.
A "repayment holiday." In addition, the bill addresses the miscalculations that may have occurred at the beginning of 2020, when taxpayers using the advance tax credit had to estimate their coming year's income in order to calculate the credit they would receive. Usually, if people estimate their income too low and receive too large a credit, they have to pay back the excess the following year.
"But people's income was all over the place in 2020," and they could have ended up owing the government a lot of money. So a provision in the bill says that "just for 2020, there's a repayment holiday," said Pollitz. "People can still claim additional credits if those are due, but if their income bounced around and they earned more than projected, they don't have to repay" the extra tax credits. And there is one other provision of interest in this area -- if a person received as little as 1 week's worth of unemployment insurance, any income above 138% of the poverty level would be disregarded when calculating eligibility for tax credits. The Senate version of the bill also includes a similar provision for calculating cost-sharing subsidies.
Also from https://www.healthaffairs.org/do/10....9.337315/full/
Bold is mine..
Building On The ACA
The Ways and Means proposal would make significant changes to bolster the ACA and improve marketplace access and affordability. The proposal would:
Extend ACA subsidies to higher-income people who do not currently qualify for 2021 and 2022;
Increase ACA subsidies for lower-income people who already qualify for 2021 and 2022;
Provide maximal ACA subsidies for individuals that receive unemployment benefits in 2021; and
Prevent taxpayers who misestimated their income in 2020 from having to repay excess premium tax credits at tax time.
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03-06-2021, 06:47 PM
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#62
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Full time employment: Posting here.
Join Date: May 2017
Location: Southeastern PA
Posts: 766
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Quote:
Originally Posted by GLM
From https://www.medpagetoday.com/infecti.../covid19/91512
Bold is mine
The bill would also eliminate a "subsidy cliff" that stops subsidies abruptly for people with incomes over 400% of the poverty level, and instead would continue the subsidies beyond the 400% level, limiting the percentage of income those higher earners pay toward their premium to 8.5%, resulting in a gradual decrease in the subsidy as income rises, she said in a phone call.
A "repayment holiday." In addition, the bill addresses the miscalculations that may have occurred at the beginning of 2020, when taxpayers using the advance tax credit had to estimate their coming year's income in order to calculate the credit they would receive. Usually, if people estimate their income too low and receive too large a credit, they have to pay back the excess the following year.
"But people's income was all over the place in 2020," and they could have ended up owing the government a lot of money. So a provision in the bill says that "just for 2020, there's a repayment holiday," said Pollitz. "People can still claim additional credits if those are due, but if their income bounced around and they earned more than projected, they don't have to repay" the extra tax credits. And there is one other provision of interest in this area -- if a person received as little as 1 week's worth of unemployment insurance, any income above 138% of the poverty level would be disregarded when calculating eligibility for tax credits. The Senate version of the bill also includes a similar provision for calculating cost-sharing subsidies.
Also from https://www.healthaffairs.org/do/10....9.337315/full/
Bold is mine..
Building On The ACA
The Ways and Means proposal would make significant changes to bolster the ACA and improve marketplace access and affordability. The proposal would:
Extend ACA subsidies to higher-income people who do not currently qualify for 2021 and 2022;
Increase ACA subsidies for lower-income people who already qualify for 2021 and 2022;
Provide maximal ACA subsidies for individuals that receive unemployment benefits in 2021; and
Prevent taxpayers who misestimated their income in 2020 from having to repay excess premium tax credits at tax time.
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So, assuming this passes, what happens to the folks that already filed their 2020 federal taxes and had to repay some of their subsidies? Will the IRS circle back on these returns, or does the person have to file an amended return?
Just curious, since I always file in April.
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03-06-2021, 06:52 PM
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#63
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Recycles dryer sheets
Join Date: Sep 2006
Posts: 151
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Quote:
Originally Posted by RetiredAt55.5
So, assuming this passes, what happens to the folks that already filed their 2020 federal taxes and had to repay some of their subsidies? Will the IRS circle back on these returns, or does the person have to file an amended return?
Just curious, since I always file in April.
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Good question, we will probably file as close to the deadline as possible. If this passes I hope turbo tax can get updated quickly.
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03-06-2021, 07:00 PM
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#64
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Full time employment: Posting here.
Join Date: May 2017
Location: Southeastern PA
Posts: 766
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Quote:
Originally Posted by GLM
Good question, we will probably file as close to the deadline as possible. If this passes I hope turbo tax can get updated quickly.
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If the politicians were thinking, if they're going to change the 2020 tax rules this late, maybe they should've extended the April 15th filing deadline.
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03-06-2021, 07:36 PM
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#65
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,865
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Quote:
Originally Posted by RetiredAt55.5
So, assuming this passes, what happens to the folks that already filed their 2020 federal taxes and had to repay some of their subsidies? Will the IRS circle back on these returns, or does the person have to file an amended return?
Just curious, since I always file in April.
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From what I've received as a Tax Aide volunteer, we just don't know yet. It could go either way.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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03-07-2021, 07:12 AM
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#66
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Recycles dryer sheets
Join Date: Sep 2018
Location: Belle Mead
Posts: 140
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Quote:
Originally Posted by ncbill
And Medicare at age 60 as well...
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This COVID relief bill doesn't address Medicare - right ?
__________________
Retired in November 2018 at age 59. No regrets.
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03-07-2021, 09:16 AM
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#67
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,054
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The subsidies are higher under 400% FPL with this bill for 2021 and 2022, and the cliff is gone.
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03-07-2021, 09:22 AM
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#68
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,054
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Quote:
Originally Posted by mitchjav
This COVID relief bill doesn't address Medicare - right ?
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I searched the bill for Medicare, it only has something about reminding people to sign up for it in a timely manner.
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03-07-2021, 11:46 AM
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#69
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,681
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I am wondering if anyone (exchanges, someone else?) will adjust the subsidies midyear if/when the bill becomes law. And would it be retroactive to Jan 1? I would qualify for another ~$150 per month subsidy, or $1,800 per year. Otherwise, I'll have to wait until next year to get the extra money back, and I may already be getting a big refund assuming I don't get the $1,400 check if they use my 2019 return.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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03-07-2021, 12:31 PM
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#70
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,054
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Quote:
Originally Posted by scrabbler1
I am wondering if anyone (exchanges, someone else?) will adjust the subsidies midyear if/when the bill becomes law. And would it be retroactive to Jan 1? I would qualify for another ~$150 per month subsidy, or $1,800 per year. Otherwise, I'll have to wait until next year to get the extra money back, and I may already be getting a big refund assuming I don't get the $1,400 check if they use my 2019 return.
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The law is for 2021 so they should adjust the APTC and you will get some back at tax time as well.
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03-07-2021, 01:15 PM
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#71
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Location: Puget Sound
Posts: 3,221
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I am hoping for the Medicare 60 thing to happen, but envision a compromise at 62. It dovetails with the earliest SS.
Looking at the ACA and available plans, we are still going with the union offered retiree medical at retirement time in ~23 months. My wife would be more comfortable with that level of coverage.
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03-08-2021, 07:02 AM
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#72
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Thinks s/he gets paid by the post
Join Date: Apr 2013
Location: Beach and Mountain
Posts: 1,087
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Will I get a revised marketplace eligibility notice that includes the 8.5% and a revised eligible amount based on the Gold Plan?
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03-08-2021, 07:17 AM
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#73
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 3,222
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Quote:
Originally Posted by Z3Dreamer
Will I get a revised marketplace eligibility notice that includes the 8.5% and a revised eligible amount based on the Gold Plan?
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I did see in articles that they wanted to change the subsidy calculation based on the cost of a gold plan but didn't see anything in the actual plan that was submitted. Did anyone see this change in the plan?
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03-08-2021, 09:55 AM
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#74
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,054
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Quote:
Originally Posted by zinger1457
I did see in articles that they wanted to change the subsidy calculation based on the cost of a gold plan but didn't see anything in the actual plan that was submitted. Did anyone see this change in the plan?
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Not in this bill. This is only a temporary measure that gives more subsidies.
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03-08-2021, 10:28 AM
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#75
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Thinks s/he gets paid by the post
Join Date: Apr 2013
Location: Beach and Mountain
Posts: 1,087
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Quote:
Originally Posted by jim584672
Not in this bill. This is only a temporary measure that gives more subsidies.
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I agree with your "Not in this bill" as I looked and could not find that the Gold is replacing the SLSCP. What are you referring to when you say "This is only a temporary measure that gives more subsidies?"
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03-08-2021, 10:29 AM
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#76
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,054
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Quote:
Originally Posted by Z3Dreamer
I agree with your "Not in this bill" as I looked and could not find that the Gold is replacing the SLSCP. What are you referring to when you say "This is only a temporary measure that gives more subsidies?"
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It is only for 2021 and 2022.
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03-08-2021, 10:34 AM
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#77
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Thinks s/he gets paid by the post
Join Date: Apr 2013
Location: Beach and Mountain
Posts: 1,087
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Quote:
Originally Posted by jim584672
It is only for 2021 and 2022.
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I hate to be so dense, but are you saying the 8.5% is only temporary?
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03-08-2021, 10:35 AM
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#78
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,054
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Quote:
Originally Posted by Z3Dreamer
I hate to be so dense, but are you saying the 8.5% is only temporary?
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Yes.
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03-08-2021, 11:13 AM
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#79
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Thinks s/he gets paid by the post
Join Date: Aug 2014
Location: Red Rock Country
Posts: 1,915
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I'm curious to see if anyone has read or heard how the COBRA subsidies will work? My husband lost his job late last year and has been on COBRA which is running about $1000 a month. It would be helpful to know if we have to wait until 2021 tax filing or will subsidies be available prior to that?
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03-08-2021, 12:52 PM
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#80
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Coronado
Posts: 3,669
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Quote:
Originally Posted by Ian S
I'm curious to see if anyone has read or heard how the COBRA subsidies will work? My husband lost his job late last year and has been on COBRA which is running about $1000 a month. It would be helpful to know if we have to wait until 2021 tax filing or will subsidies be available prior to that?
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The bill says:
Quote:
(A) REDUCTION OF PREMIUMS PAYABLE.—In the case of any premium for a period of coverage during the period beginning on the first day of the first month beginning after the date of the enactment of this Act, and ending on September 30, 2021, for COBRA continuation coverage with respect to any assistance eligible individual described in paragraph (3), such individual shall be treated for purposes of any COBRA continuation provision as having paid the amount of such premium if such individual pays (or any person other than such individual’s employer pays on behalf of such individual) 15 percent of the amount of such premium.
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This sounds to me like your premiums would immediately be reduced by 85% through September. I didn't read far enough to see whether there's some reimbursement process that the insurance company (or employer in the case of a self-insured company) would go through to be repaid for the 85% discount.
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