I took the subsidy for the first time in 2018. About $200 per month on a $600 per month bronze plan. I get a small pension and work part-time for income and fun vs. killing myself with 12-hour workdays before I retired in 2014. I used the insurance for a mammogram and a doctor's visit with a $75 co-pay and that was it for the year.
Anyway much to my horror our income (husband is on social security and Medicare) came in at 401% of federal poverty rate. Was going to have to pay back every penny and an additional $2,000 in federal income tax in addition to the $4,000 withheld for a total of $8,000. For about an hour I thought I would have a heart attack. The "free" mammogram would be very costly!
I put $6,000 in my traditional IRA and it brought us low enough that I did not have to pay back the subsidy and ended up owing around $1,100 to the IRS on top of the $4,000 that was withheld. So don't be stupid like me. If you are anywhere near the cliff the subsidy is not worth it.
Anyway much to my horror our income (husband is on social security and Medicare) came in at 401% of federal poverty rate. Was going to have to pay back every penny and an additional $2,000 in federal income tax in addition to the $4,000 withheld for a total of $8,000. For about an hour I thought I would have a heart attack. The "free" mammogram would be very costly!
I put $6,000 in my traditional IRA and it brought us low enough that I did not have to pay back the subsidy and ended up owing around $1,100 to the IRS on top of the $4,000 that was withheld. So don't be stupid like me. If you are anywhere near the cliff the subsidy is not worth it.
Last edited: