ACA Unaffordable Exemption (8%)

[Dusty2004]

First let me set up background.

1) No one in the Household (I do not care how many people) has health insurance for any month of the year (full 12 months with no insurance)

2) No insurance is offered to any member of the Household by an employer.

What I would like is for someone to give me an example, based on the above criteria, of who would qualify for the unaffordable Exemption (insurance cost > 8% of Household income).

Please give me the following:

A) Total household income.

B) Total number of individuals on the tax return.

C) Ages of all of the individuals on the tax return.

d) What County and State they live in.


My conclusion is there is no combination (based on the rates on the ACA web site) that can qualify for this exemption (or should it be called an exclusion). I put about 2 hours into a spreadsheet that works really well. The spreadsheet (with as little input as possible) led me to determine who would be eligible and it helped me to this conclusion.

So - can anyone give me an example of the any household / income combination they believe would be eligible for this exemption?

Dusty

[David1980]

When I looked at it, I made a similar observation. Try above filing threshold below 100% of poverty level? That would give you no subsidy amount. Once you get to subsidy though seems near impossible for the insurance to exceed 8% of household income.

Edit: Hmm, actually doing the worksheet for that... I'm not sure that qualifies either. Problem is that even though they won't qualify for the subsidy, the Marketplace Coverage Affordability Worksheet still has the slcsp amount on line 10 thus is effectively treating the taxpayer as-if they do qualify for the subsidy. Take a 27 year old taxpayer living in Texas making $11,000 a year for example. Obviously the health insurance w/out subsidy is greater than 8%, but the worksheet calculates a required contribution of $0.

Of course, in Texas this taxpayer could qualify for a hardship exemption through marketplace for "You were determined ineligible for Medicaid because your state didn't expand eligibility for Medicaid under the Affordable Care Act." In Washington, they should have just signed up for Medicaid and if they didn't for whatever reason, well, $95 penalty?

Can anyone give a scenario in which the 8% exemption would actually apply? Interesting...

[TaxGuyBill]

I would think most situations where the taxpayer is over 400% of the Federal Poverty Level, so they don't qualify for the Premium Tax Credit. Especially if they are higher in age and/or in a higher-cost geographic location. I would think most (perhaps all) situations where the taxpayer qualifies for the Premium Tax Credit, they would not qualify for the 8% exemption.

My first scenario worked. Single 60 year old (higher in age) taxpayer living in Olmstead County, MN (higher cost geographic location in my State) with income of $50,000. The lowest price bronze plan is $498.94, or roughly $6000 per year, which is 12% of $50,000.

[Dusty2004]

Thanks

I agree. So far I can find no examples.

Dusty

[Dusty2004]

Tax Guy Bill:

I would think most situations where the taxpayer is over 400% of the Federal Poverty Level, so they don't qualify for the Premium Tax Credit. Especially if they are higher in age and/or in a higher-cost geographic location. I would think most (perhaps all) situations where the taxpayer qualifies for the Premium Tax Credit, they would not qualify for the 8% exemption.

My first scenario worked. Single 60 year old (higher in age) taxpayer living in Olmstead County, MN (higher cost geographic location in my State) with income of $50,000. The lowest price bronze plan is $498.94, or roughly $6000 per year, which is 12% of $50,000.

Thank you! Thank you! Thank You! This is what I was looking for. I had an error in my spreadsheet when I was calculating the FFL. I fixed it and it now does show this individual as being eligible for the "A" exemption.

Again THANK YOU! This will be nice when tax time comes and I have to calculate if they are eligible.

Dusty

[spanel]

Thank you! Thank you! Thank You! This is what I was looking for. I had an error in my spreadsheet when I was calculating the FFL. I fixed it and it now does show this individual as being eligible for the "A" exemption.

Again THANK YOU! This will be nice when tax time comes and I have to calculate if they are eligible.

Dusty

What does one have to do to get a copy of your spreadsheet?

Chris

[Dusty2004]

just contact me

What does one have to do to get a copy of your spreadsheet?

Chris

My e-mail through here and I will be happy to forward it to you.

Dusty

[spanel]

My e-mail through here and I will be happy to forward it to you.

Dusty

email sent

thanks again

[Dusty2004]

e-mail

email sent

thanks again

I have not gotten it. Send it to

j

zelt

@

yahoo

.

com

Dusty

[riverviewtax]

How do I find your email

I am new to this forum and I would love to have the spreadsheet you have prepared but I have not idea how to access your email address.

[Burke]

Put your cursor over his name on a post, click, and you can select the option to send an email to him. It won't provide his address to you, but he can reply directly.

[Dusty2004]

contact

I am new to this forum and I would love to have the spreadsheet you have prepared but I have not idea how to access your email address.

Send it to

j

zelt

@

yahoo

.

com