In 2013 my single client has line 22 income of 52K. Her AGI is $43k. She is going to get insurance on the website before M<arch 31. She has no SS, or tax exempt interest, or foreign excluded income. If this is the same in 2014 then she will get her credit when she files, correct? Next, if sahe were slightly over $46,000 of MAGI it seems to me she could put money into an IRA or SEP to lower MAGI under $46k and qualify. Anyone disagree?
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I agree with everything, IF the cost of her insurance would qualify her for the credit, and that she otherwise qualifies for the credit (such as no affordable employer insurance).
At that income the "applicable percentage" is 9.5%. If the "second lowest Silver plan" for her (non-tobacco user) is OVER 9.5% of her MAGI, the credit will be the amount of the cost of the "second lowest Silver plan" that is OVER 9.5%. It basically brings the cost of the "second lowest Silver plan" down to 9.5% of her MAGI.
If the cost of the "second lowest Silver plan" for her (non-tobacco user) is UNDER 9.5% of her MAGI, then there is no credit. The insurance is already considered "affordable".
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