Marketplace Affordability Worksheet

[arlo]

This form says to use the second lowest cost silver plan then I keep reading that
we are to use the lowest bronze plan to determine the 8% exemption. Iam confused!!!!!

[Dusty2004]

You need both

Arlo:

You will need both plans to calculate.

Dusty

[TaxGuyBill]

The Bronze plan is used AFTER the Premium Tax Credit. The Bronze plan is entered on Line 1 of that worksheet.

The rest of the worksheet (Lines 2-11) is to calculate the Premium Tax Credit, which is BASED on the Second Lowest Cost Silver Plan. After the calculation of the Premium Tax Credit, Line 12 applies the Premium Tax Credit to the Bronze plan.


As was noted in another thread, MOST (or perhaps ALL) taxpayers that would have qualified for the Premium Tax Credit will NOT qualify for the 8% exemption.

[arlo]

Marketplace Affordability Worksheet

If line 9 is greater than 10 then line 11 will be zero.
If not then line 11 would be the PTC and be subtracted from the Bronze plan which woiuld be
line 12. Why did they not make it clear the line 11 is the PTC.

If all of the above is correct then I am ok. If not let me know. Thanks

[TaxGuyBill]

Yes, that is correct.

[arlo]

Affod. worksheet

As was noted in another thread, MOST (or perhaps ALL) taxpayers that would have qualified for the Premium Tax Credit will NOT qualify for the 8% exemption.


Does that then mean that all you have to do is compare the bronze plan to the 8% Inome?

[TaxGuyBill]

No. Technically, you still need to go through the worksheets.

When going through all of the worksheets, you subtract the Premium Tax Credit from the Bronze plan. The result will RARELY, IF EVER, be more than 8% of their household income.

[mactoolsix]

Confusing worksheet!

I assumed this thread was pertaining to the Marketplace Coverage Affordability Worksheet worksheet from Form 8965 instructions page 11.

So I decided to work through this and get stuck on #7:
"7. Enter the applicable figure for the amount on line 3 from the table in the instructions for Form 8962, line 7"

Line 3 is all non-taxable SS benefits received, which could be say $4,000.

The table being referred to is for line 7 of form 8962 and has numbers of 133 thru 400.

So now I'm thinking we are supposed to use the amount on Line 5 of form 8962.

Could someone confirm which figures to use?
Thanks,
Mike

[Dusty2004]

Spreadsheet

I have put together a spreadsheet that will calculate if they are eligible or not. You just have to enter in 5 numbers related to the individual tax return you are working on. I am willing to share and my contact info is in this thread http://forum.thetaxbook.com/showthre...ption-%288-%29.

Dusty

[Black Bart]

I assumed this thread was pertaining to the Marketplace Coverage Affordability Worksheet worksheet from Form 8965 instructions page 11.

So I decided to work through this and get stuck on #7:
"7. Enter the applicable figure for the amount on line 3 from the table in the instructions for Form 8962, line 7"

Line 3 is all non-taxable SS benefits received, which could be say $4,000.

The table being referred to is for line 7 of form 8962 and has numbers of 133 thru 400.

So now I'm thinking we are supposed to use the amount on Line 5 of form 8962.

Could someone confirm which figures to use?
Thanks,
Mike

I also get stuck on line 7 of the affordability worksheet (8965 instructions-page 11). In your case the line 7 instructions say "Enter the applicable figure for the amount on line 3 (the $4,000 non-taxable SS) from the table in the instructions for form 8962, line 7" which apparently is the Federal Poverty Line table (133 to 400).
This instruction literally doesn't make sense because it's saying to look for a figure which can't be looked up on this table and obviously doesn't apply anyway.
It seems like they want the FPL figured on the SS only, but you've already got that included when you figure FPL on worksheet lines 2 through 6.

So I don't know. I agree with Arlo's post above which asks "Why didn't they make it clear that line 11 is the PTC?" I didn't realize that until Bill told us so. Too, I was wondering (like Arlo) that if the whole thing's more or less moot since almost nobody will qualify for the exemption, why not just use the 8% over HH income and forget the worksheet. But, Bill's right when he says you technically have to use the worksheet (to rule out everybody I assume) and to CYA from sue-happy clients. I know we could use the spreadsheet offered but I'd still like to know where we're going wrong. I don't know if your line 5-form 8962 suggestion is right or not. Maybe somebody else does.

[TaxGuyBill]

Line 7 on the draft instructions I think was referring to Line 3 of 8962.

The non-draft instructions are out, and make it more clear:

http://www.irs.gov/pub/irs-pdf/i8965.pdf#page=11

[arlo]

Mkt Place Affd. worksheet ( getting lazy)

I just printed out the new instructions for 8965 on page 11 shows the revised form. It is must clearer
and works great. There is an error on Page 11 Line 13 which is new. It says multiply line 12 by 12 and
enter the amount for each month on Page 10 Affordability Worksheet. That is not correct. Line 12 which is the monthly contribution is the be entered on Page 10 Affordability Worksheet, it is not the Annual Amount.

Or Am I wrong.

[arlo]

Marketplace Affordability Worksheet

Line 1 172 Ill Dewit Co
Line 2 35000
Line 3 I use 0
Line 4 35000
Line 5 11490
Line 6 304
Line 7 095
Line 8 3325
Line 9 277
Line l0 221 Ill Dewit Co.
Line 11 0 this would be the tax credit if any
0Line 12 172 This figure go to the Affodability Worksheet
Line 13 2064 Instructions are wrong

$35,000 x 8% 2800. Line 13 2064 Does not get exemptions.

[TaxGuyBill]

I just printed out the new instructions for 8965 on page 11 shows the revised form. It is must clearer
and works great. There is an error on Page 11 Line 13 which is new. It says multiply line 12 by 12 and
enter the amount for each month on Page 10 Affordability Worksheet. That is not correct. Line 12 which is the monthly contribution is the be entered on Page 10 Affordability Worksheet, it is not the Annual Amount.

Or Am I wrong.

It's confusing, but the worksheet is correct, and needs to be that way for changes mid year. If it was calculated ONLY an an annual basis, you would be correct.

The Affordability Worksheet on page 10 requires the annual amount (see the instructions on that worksheet). That worksheet determines if EACH MONTH is exempt or not (not if the entire year is exempt). Do it figures that $8001 of annual premiums for $100,000 is exempt for January. Then February, etc.

It does it that way so if things CHANGE in mid-year (such as change in employer(s), moving to another State, or change in household size), the calculation is done each month. In the above example, the taxpayer may have moved March 1st and their new premiums are now $7999. They are no longer exempt for March-December.

Does that make sense, or am I being too wordy about it?

[arlo]

Affordability Worksheet

TaxGuyBill

I can see where you are coming from. You would see each month if the person is exempt. I think you are correct.

Now we only have ninety nine forms to try to understand.