ACA exception 8% of AGI Marketplace

[TaxGuyBill]

You got me... Why do you need that?

You need to have the Second Lowest Cost Silver Plan (SLCSP) to determine if a taxpayer (who does NOT have access to employer insurance) is eligible for the 8% exemption.

We (or the software) need to calculate if the taxpayer had bought insurance through the Healthcare Marketplace, if the cost AFTER the Premium Tax Credit (which uses the SLCSP) is 8% of their household income.


My software (ProSeries) doesn't have an 8% worksheet YET. After the holidays, I'm going to find out if it will have one this year or not. If it doesn't, I'll be making a spreadsheet for the calculations (I already have the framework started for the spreadsheet).

[spanel]

You need to have the Second Lowest Cost Silver Plan (SLCSP) to determine if a taxpayer (who does NOT have access to employer insurance) is eligible for the 8% exemption.

We (or the software) need to calculate if the taxpayer had bought insurance through the Healthcare Marketplace, if the cost AFTER the Premium Tax Credit (which uses the SLCSP) is 8% of their household income.


My software (ProSeries) doesn't have an 8% worksheet YET. After the holidays, I'm going to find out if it will have one this year or not. If it doesn't, I'll be making a spreadsheet for the calculations (I already have the framework started for the spreadsheet).

I'm pretty sure its the lowest cost Bronze plan.

Coverage is considered unaffordable - The amount you would have paid for employer-sponsored coverage or a bronze level health plan (depending on your circumstances) is more than eight percent of your actual household income for the year as computed on your tax return.

http://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/ACA-Individual-Shared-Responsibility-Provision-Exemptions

As well.. The speadsheet will be no good if you cant find out what the plans would have cost in 2014... I still havent found a place to get that info yet.

Chris

[TaxGuyBill]

I'm pretty sure its the lowest cost Bronze plan.

Yes, it's 8% of the lowest cost of the Bronze plan, but it is AFTER any Premium Tax Credit.

To calculate what the Premium Tax Credit is, you use the Second Lowest Cost Silver Plan. When you figure out what the Premium Tax Credit is, you subtract the Premium Tax Credit from the Lowest Cost Bronze plan. That is what the taxpayer COULD have paid for insurance. THAT is the number that is used for 8% of the Household income. See the "Marketplace Coverage Affordability Worksheet" in the Form 8965 Instructions.

http://www.irs.gov/pub/irs-dft/i8965--dft.pdf#page=12

[Burke]

The final instructions are now out.

www.irs.gov/pub/irs-pdf/i8965.pdf.

[David1980]

Anyone figured out how to get that info on Healthcare.gov?

Chris

https://www.healthcare.gov/taxes/tools/

[AZUKHiker]

Doesn't Work

Just tried the tools at https://www.healthcare.gov/taxes/tools/ and couldn't get them to work.

Didn't recognize my zip code and even with a recognized zip code came up with no premiums.

I'll still use this link for now:

http://www.valuepenguin.com/ppaca/exchanges

[TaxGuyBill]

I originally had problems, but then I figured out if I changed anything, I needed to close the window and start again. I think Firefox was also quirky.

[David1980]

Just tried the tools at https://www.healthcare.gov/taxes/tools/ and couldn't get them to work.

Didn't recognize my zip code and even with a recognized zip code came up with no premiums.

I'll still use this link for now:
http://www.valuepenguin.com/ppaca/exchanges

It also redirects you to state exchanges if your state has one, so not terribly useful for me. I'd rather use a .gov though for this purpose. If I ever had to defend my calculation on the exemption to an auditor I wouldn't want to tell them I relied on "valuepenguin dot com" for my estimates.

[AZUKHiker]

Firefox is the problem

Just tried it in Chrome and that works. So it is Firefox that is the problem.

[Lion]

Sends me to the CT exchange which explains the Bronze, for instance, plan's features but NOT its cost.