ACA question husband working wife retired

[joesxm3]

My friend is thinking of retiring but is only 62 or 63. Her husband will be 65 in a couple months so can get medicare. She can get COBRA after she retires.

My question is if the husband keeps working and their income is too high for the ACA subsidies, can she work around that by filing separate income tax for a couple years during ACA time?

Does ACA look at combined income on married people? Being single I never checked on that.

 

[finnski1]

My friend is thinking of retiring but is only 62 or 63. Her husband will be 65 in a couple months so can get medicare. She can get COBRA after she retires.

My question is if the husband keeps working and their income is too high for the ACA subsidies, can she work around that by filing separate income tax for a couple years during ACA time?

Does ACA look at combined income on married people? Being single I never checked on that.

Yes, even if one is on Medicare.

 

[RetiredAndLovingIt]

She can't get around the rules by filing Married Filing Separately.

https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics

 

[old medic]

Like mentioned, no you can't. Im retired on ACA, Wife is still working. He can put money into 401K, Both tIRAs, a HSA if either have HDHP. Even a flex spending plan to reduce income.

 

[VanWinkle]

It is easy to go onto heathcare.gov and input you info and joint income to see what subsidies are available. Reducing taxable income is the secret to increasing subsidies.

You will likely be limited to 18 months on cobra, so you have some time to work on getting taxable income under control.

Good luck,

VW

 

[Dtail]

My DGF is not a DW for this main reason.

 

[VanWinkle]

My DGF is not a DW for this main reason.

Same here until after 2024 when she gets on Medicare.

 

[cyber888]

I maxed out my IRA contribution for 2023 to lower my ACA income and get a higher subsidy.
My first year of ACA was 2023, so I will find out what happens during my tax return this year. Anyone max out their IRA to lower ACA bill and increase subsidy?

 

[PaunchyPirate]

I maxed out my IRA contribution for 2023 to lower my ACA income and get a higher subsidy.
My first year of ACA was 2023, so I will find out what happens during my tax return this year. Anyone max out their IRA to lower ACA bill and increase subsidy?

Yes, I did what you did. Well, I didn't MAX out my IRA but I put in all that I legally could.

I retired at the end of 2018, but had one final pay check issued in 2019. That was my only W2 income for 2019. It was only about $5000. I contributed all of that to my IRA as soon as I received it. That allowed me to reduce my income for 2019 by $5000, which helped with my subsidy.

 

[cyber888]

Yes, I did what you did. Well, I didn't MAX out my IRA but I put in all that I legally could.

I retired at the end of 2018, but had one final pay check issued in 2019. That was my only W2 income for 2019. It was only about $5000. I contributed all of that to my IRA as soon as I received it. That allowed me to reduce my income for 2019 by $5000, which helped with my subsidy.

Thanks man. I am looking forward to that.

 

[Dtail]

Same here until after 2024 when she gets on Medicare.

With us, it is me getting on Medicare in 2025.
Plus my brother is my dependent until this year.
Savings of 23k yearly.