No Health Coverage All Year and Is Insurance Unaffordable

[photoman]

I have a single client with 38146 AGI and did not have any health insurance all 12 mths. She was not offered any group coverage and had no marketplace coverage. She just did not buy coverage and none was offered to her. My software is saying she owes a 557.00 penalty , it is calculating this and is using a 207.00 national average premium per mth. In the tax book it uses this 207 nat average . If I go and do a 8965 and affordability worksheet in my software and have it lookup her bronze premium for her zip code the monthly premium based on a smoker is 269.00 and when I recalculate it takes away the penalty showing her insurance as unaffordable.

My question is do we have the option to figure this way or must we just use the 207 amount national average.

This is my first one this season.

Thanks,Ron

[kathyc2]

I have a single client with 38146 AGI and did not have any health insurance all 12 mths. She was not offered any group coverage and had no marketplace coverage. She just did not buy coverage and none was offered to her. My software is saying she owes a 557.00 penalty , it is calculating this and is using a 207.00 national average premium per mth. In the tax book it uses this 207 nat average . If I go and do a 8965 and affordability worksheet in my software and have it lookup her bronze premium for her zip code the monthly premium based on a smoker is 269.00 and when I recalculate it takes away the penalty showing her insurance as unaffordable.

My question is do we have the option to figure this way or must we just use the 207 amount national average.

This is my first one this season.

Thanks,Ron

The 207 is used to calculate the maximum penalty, 207*12=2,484. Be sure to use the 2015 rates rather than 2016 rates when looking up her lowest price bronze plan.

[photoman]

Thanks for the help

[Dusty2004]

Subsidy

I have a single client with 38146 AGI and did not have any health insurance all 12 mths. She was not offered any group coverage and had no marketplace coverage. She just did not buy coverage and none was offered to her. My software is saying she owes a 557.00 penalty , it is calculating this and is using a 207.00 national average premium per mth. In the tax book it uses this 207 nat average . If I go and do a 8965 and affordability worksheet in my software and have it lookup her bronze premium for her zip code the monthly premium based on a smoker is 269.00 and when I recalculate it takes away the penalty showing her insurance as unaffordable.

My question is do we have the option to figure this way or must we just use the 207 amount national average.

This is my first one this season.

Thanks,Ron

Keep in mind you have to determine what her subsidy would have been had she applied to determine affordability.

Dusty

[nwtaxlady]

Are you referring to if she had purchased thru market place...what would have been

Dusty.... Are you referring to if she had purchased thru the Market Place then what would have been her Premium Tax Credit? I saw that in the Instructions for Form 8965 page 9 right hand column. It even gives an example that you have to take the premium and reduce it by the PTC (would have received) then take that number and see if that number exceeds 8.05%.. Which after you figure that into the equation then it IS affordable!

Now my software (Lacerte) is not computing this. So how are you doing this? What is the easy way to compute all this?

[David1980]

Dusty.... Are you referring to if she had purchased thru the Market Place then what would have been her Premium Tax Credit? I saw that in the Instructions for Form 8965 page 9 right hand column. It even gives an example that you have to take the premium and reduce it by the PTC (would have received) then take that number and see if that number exceeds 8.05%.. Which after you figure that into the equation then it IS affordable!

Now my software (Lacerte) is not computing this. So how are you doing this? What is the easy way to compute all this?

There's some worksheets - look at this thread. http://forum.thetaxbook.com/showthre...935#post177935

[Lion]

It's easy but very tedious. Charge for it !!

[Dusty2004]

I use value penguin

Dusty.... Are you referring to if she had purchased thru the Market Place then what would have been her Premium Tax Credit? I saw that in the Instructions for Form 8965 page 9 right hand column. It even gives an example that you have to take the premium and reduce it by the PTC (would have received) then take that number and see if that number exceeds 8.05%.. Which after you figure that into the equation then it IS affordable!

Now my software (Lacerte) is not computing this. So how are you doing this? What is the easy way to compute all this?

Value Penguin calculates the cost of insurance less the cost of subsidy. Saves time.

[nwtaxlady]

do you have a link?

Value Penguin calculates the cost of insurance less the cost of subsidy. Saves time.

Do you have a link for value penquin?

[Dusty2004]

See below

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

Dusty

[nwtaxlady]

Dusty....

Is it the "ACA subsidy Calculator" that I want to click on? I did and my case is MFJ just taxpayer & spouse and not offered thru employer and did not have coverage all year. Their income is $28,346. Will you look that up and see what you get. The calculation doesn't say anything about the cost of the Bronze plan why wouldn't it have that figure on that?

Thanks for your help.

[Dusty2004]

I have a link directly to PA

Is it the "ACA subsidy Calculator" that I want to click on? I did and my case is MFJ just taxpayer & spouse and not offered thru employer and did not have coverage all year. Their income is $28,346. Will you look that up and see what you get. The calculation doesn't say anything about the cost of the Bronze plan why wouldn't it have that figure on that?

Thanks for your help.

But here is how you do it. Once the page comes up click on the state you are doing this for.

Select the year, County, Number in the household and AGI. Then submit.

Once you do that it will come back with the plans and and how much they would actually have to pay if they did get the insurance through the ACA website.

You use those number (Bronze and Silver) to calculate the affordability.

Dusty