ACA application and investment income question

[EastWest Gal]

I am applying for the ACA for the first time in which I expect to have a subsidy, and I have a question about investment income.

Our brokerage account is held jointly. Do I report the expected income for just one of us, or do I divide it in two and report half each? Does it matter?

I'm applying to the new PA state exchange, which just opened November 1st.

 

[PaunchyPirate]

I am applying for the ACA for the first time in which I expect to have a subsidy, and I have a question about investment income.

Our brokerage account is held jointly. Do I report the expected income for just one of us, or do I divide it in two and report half each? Does it matter?

I'm applying to the new PA state exchange, which just opened November 1st.

I believe you would need to include the entire income. It's "household income". This blurb from healthcare.gov says "For most people, a household consists of the tax filer, their spouse if they have one, and their tax dependents, including those who don’t need coverage."

Here is a link to the page I found.

https://www.healthcare.gov/income-and-household-information/income/

I would assume that Pennie goes by the same rules as the federal exchange does, since I've not seen anything to the contrary.

 

[EastWest Gal]

I know we need to include the entire income, but it is a joint investment account, and it asks about income as if it is all individual. Do I put the entire income under my name, or half under DH and half under me? Does it matter?

 

[cathy63]

I can't speak to PA, but at least in CA it doesn't matter if or how you divide the income. They add the numbers together for all family members and calculate the subsidy from that. I've done it both ways and they don't care. The forms asking for amounts for different types of income seem like they're mostly just a reminder to help you make sure you've thought about all your sources of income.

The one time they called me to question our numbers was when I had divided everything by two, so I ended up having to confirm twice as many data points for them. Now I just say that all the income is mine and DH earns $0 and that works fine.

 

[EastWest Gal]

I can't speak to PA, but at least in CA it doesn't matter if or how you divide the income. They add the numbers together for all family members and calculate the subsidy from that. I've done it both ways and they don't care. The forms asking for amounts for different types of income seem like they're mostly just a reminder to help you make sure you've thought about all your sources of income.

The one time they called me to question our numbers was when I had divided everything by two, so I ended up having to confirm twice as many data points for them. Now I just say that all the income is mine and DH earns $0 and that works fine.

Thanks. I think that answers my question. If it makes it easier for them, they will want me to do it anyway.

 

[GTFan]

Yeah they just do that to make it easier for W-2 folks, how you divide it up doesn't matter.

 

[EastWest Gal]

I can't speak to PA, but at least in CA it doesn't matter if or how you divide the income. They add the numbers together for all family members and calculate the subsidy from that. I've done it both ways and they don't care. The forms asking for amounts for different types of income seem like they're mostly just a reminder to help you make sure you've thought about all your sources of income.

The one time they called me to question our numbers was when I had divided everything by two, so I ended up having to confirm twice as many data points for them. Now I just say that all the income is mine and DH earns $0 and that works fine.

I just completed the application and it was easy-peasy. What you suggested worked well.

I did an income estimate for the Pennie application, and the only documentation they wanted was evidence of my husband's very small self-employment income. So I supplied his Schedule C from the last 3 years and he wrote a letter explaining that due to COVID, a working musician's income is not just unpredictable, it's also non-existent. I was surprised that I did not need to supply any documentation for the other sources of income, investment, orchard lease, etc. Just paid my first month's premium. I feel blessed and reassured.

 

[Rianne]

We've been on the ACA since 2014. So the income proof was from 2013. The first 3 years were challenging. DH consulted from home, worked part time for the university and I worked part-time. We had to provide pay stubs and spreadsheets, and copies of 2013 tax returns. DH still consults from home. I'm retired. We've haven't sent any proof of income for the last 3 years. We just submit the application through our HI broker.

I think so much confusion was from growing pains in the first few years. It is so easy these days.