Household income as a percentage of federal poverty line

[fh2000]

This is from Form 8962 Premium Tax Credit (PTC), line 5.

Our 2022 tax return shows 203%. For 2023, it will be 220%.

DW is on ACA. Our 2023 income is $40,385, and we received the full federal subsidy. At what percentage, will we begin to see the impact of reducing the subsidy?

 

[teej1985]

250%

 

[RunningBum]

What do you mean that you received the "full federal subsidy"? How did you determine that? You subsidy is a combination of your income % and the second lowest cost silver plan in your area, so there isn't a standard or maximum subsidy account across the board for everyone.

To me getting the full subsidy would mean that your share of the premium would be $0 for any plan, including the most expensive gold plan available to you. Is that what you had in 2023?

 

[Aerides]

This is from Form 8962 Premium Tax Credit (PTC), line 5.

Our 2022 tax return shows 203%. For 2023, it will be 220%.

DW is on ACA. Our 2023 income is $40,385, and we received the full federal subsidy. At what percentage, will we begin to see the impact of reducing the subsidy?

Are you asking...at what income dollar, as a percentage of the FPL, will you see your subsidy start to get smaller?

If so, it's sort of a sliding scale. There used to be a cliff around $65k where the subsidy ends, but now it goes higher, at least for the next couple of years.

So if your income goes from $40 to $60, it will be a (slightly?) smaller subsidy, but only the ACA sites can tell you specifically how much for your situation.

 

[ShokWaveRider]

Our Ages - 70 & 65

2022 - 303% (DW on ACA) Only Income SS & Pensions + very small unqualified interest
2023 - 401% Income from SS & Pensions + Some Unqualified Interest income (Had to pay back $10k of ACA subsidy for DW )
Estimated 2024 - >700% from SS +Pensions + All Unqualified Interest + Some Unqualified (IRA & MYGA) Interest, No Capital Draw down. No more manipulating Magi for ACA.

 

[fh2000]

What do you mean that you received the "full federal subsidy"? How did you determine that? You subsidy is a combination of your income % and the second lowest cost silver plan in your area, so there isn't a standard or maximum subsidy account across the board for everyone.

To me getting the full subsidy would mean that your share of the premium would be $0 for any plan, including the most expensive gold plan available to you. Is that what you had in 2023?

Yes DW's monthly premium is $0.

I am on Medicare.

 

[fh2000]

Our Ages - 70 & 65

2022 - 303% (DW on ACA) Only Income SS & Pensions + very small unqualified interest
2023 - 401% Income from SS & Pensions + Some Unqualified Interest income (Had to pay back $10k of ACA subsidy for DW )
Estimated 2024 - >700% from SS +Pensions + All Unqualified Interest + Some Unqualified (IRA & MYGA) Interest, No Capital Draw down. No more manipulating Magi for ACA.

teej above thread responded 250%.

When yours were 303% in 2022, did you have much reduction on subsidy for DW?

 

[ShokWaveRider]

teej above thread responded 250%.

When yours were 303% in 2022, did you have much reduction on subsidy for DW?

Yes, without looking at the forms, but from my spreadsheet, we only paid ~$83 a month average. The highest we paid for a given month was $134. DW did all the tests and other tricks one can do to get discounts with Florida Blue in Florida. Some months we paid $0. I think the non-discounted monthly premium was over $1000.

Again, these numbers are not exact, but an estimation based on my own personal spreadsheet.

 

[TickTock]

So if your income goes from $40 to $60, it will be a (slightly?) smaller subsidy, but only the ACA sites can tell you specifically how much for your situation.

Aerides has it right - go to healthcare.gov and run a few different scenarios, changing your expected MAGI.