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    Unaffordability Exemption & Lacerte users

    Any Lacerte users out there that can tell me how the program is handling this situation.

    Married couple with household income of $28,000 and have NO health insurance. How do you or Lacerte figure if it is unaffordable for the Unaffordable Exemption?

    When I look at the instructions for the Form 8965 and look at page 9. NO they were not eligible thru employer. So if you read page 9 in the right hand column, it says you need to find the lowest cost bronze plan you COULD have purchased for your household. Then it continues to say....Subtract from the premium the maximum premium tax credit that you COULD HAVE claimed if they had enrolled in that plan. Then if the result is more than 8.05% of household income=unaffordable.

    How is Lacerte handling this? Or how do we come up with that figure?

    #2
    You have to fill out the worksheet

    Or you can download the Excel Spreadsheet from http://www.pridetaxpreparation.com/affordable-care-act or you can search for calculators on the internet.

    Dusty

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      #3
      My experience has been that except for older taxpayers (thus more expensive insurance) at incomes too high for PTC (but not too high) that did not have employer insurance offered it's difficult to qualify for the unaffordable coverage. For most people the marketplace plan minus the premium tax credit is going to be less than 8%. The sweet spot being when they make just a tad too much for any PTC and are old enough that the insurance costs a lot. Tobacco use helps.

      Easier to qualify when employer offers health insurance, but makes it too expensive.
      Last edited by David1980; 01-29-2016, 02:02 PM.

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