Healthcare Options At 49

[RetiredAt49]

About to retire and so I will lose my employers health coverage. I have enough in savings to cover expenses for 1-2 years so I will not have any employer “income” to show but I do have a taxable brokerage account (100% equities) with $1.8 Million and some rental income of around $35k/year.

What do I put in ACA website as my income? I’d love to leverage the credits but thinking my rental + tax brokerage account might put me over.

 

[PaunchyPirate]

The value of your assets (brokerage accounts and real estate) are not considered in determining ACA subsidies. It is entirely based on the annual INCOME that is generated by your assets.

So if your Modified Adjusted Gross Income (basically your Adjusted Gross Income from a tax return plus a few things added back in like tax-exempt interest) is only $35k/year, then that is the value you put into the ACA website as an income estimate.

If your current income is much higher than it will be in 2022, and if you are asked to provide proof of your estimated income, you can submit your most recent tax return and write up an explanation letter indicating that you will not be employed in 2022 and your lower estimated income will be derived from investments and rental property.

 

[aaronc879]

Figure out what you get in dividend income from your investments then add your rent income. That is what you report for income. Is the $35K your net income after deducting expenses? You probably will have to pay full price or close to it since your income is likely fairly high depending on you dividend income.

 

[PaunchyPirate]

Ah, yes. I missed that the rental income was $35k in itself. You need to add all your other income to that (dividends, cap gains, etc.) to get your total estimated income for the ACA subsidy calculation.

 

[teej1985]

Is it 35k of rental revenue or rental profit on Schedule E?

 

[ivinsfan]

OP don't forget to add the 6k plus a month for your spouse's business buyout. Does the 35K rent include the moneys from your spouse's 1.5 million dollars in rental property?

 

[pb4uski]

One way to estimate it is to take your 2020 tax return AGI or estimated 2021 AGI and then adjust it for changes... wages will change since you'll no longer be working... interest and dividends may not be very different.... ditto with rental income unless you had big repair bills that will no recur in one of those years.

Or estimate each element of AGI for 2022.

 

[Aerides]

During enrollment, the site will ask you for estimated monthly income by a couple of categories, including cap gains/interest etc.

If your total is 35k you will get significant subsidies.