Originally Posted by jpeter1093
I retired April 2 at age 63; my plan for health insurance for me and my wife was to stay under the threshold so we would get a subsidy. I knew my income for the months I worked in 2019 and estimated the income from savings that we would be living on; ie, the interest & dividends on that savings. Note the savings itself is already after tax. I successfully signed up with the subsidy included. Today I got a notice that I didn't provide proof of income so they were stopping my subsidy. I always thought we evened up at tax time; plus, what would I provide as income verification in my case?
This happened to me in the first 2 years (2014, 2015) I bought HI through the NYS Marketplace. I received repeated requests for income verification because none of my income (like yours) was of the types shown in the Marketplace's list of verifiable income. I even attached copies of my December monthly brokerage statement (1099s hadn't come out yet) which showed YTD income. They were ignored and the requests kept coming in well into the year.
I called the NYS Marketplace and while they understood my problem, they were clueless as to what to do about it other than telling me to ignore the requests (big help!). I simply reconciled it at tax time.
In 2016, I finally began receiving the subsidy on an advanced basis, as a monthly premium tax credit instead of taking the entire amount as a credit against my federal tax bill the following year. Back in 2014 and 2015, my subsidy was small, never more than $500 for the whole year.
In 2017 and 2018, I had the opposite problem. I received a small monthly premium credit but went over the subsidy cliff and had to pay it back. Now, I have become ineligible for the monthly credit again because it is based on my 2017 tax return. If I don't go over the cliff in 2019, the growing subsidy will greatly exceed my tax bill, so I will file early to get a refund.