Aca question??

[JenMO]

Client enrolled in obamacare. Her income was close to the limit, doing her taxes, it's showing she has to pay back $12,000 in tax premiums. I can eliminate most of that by having her do an IRA, but then, she has a 62year old dependent who draws social security. The dependent does not have to file income tax, but do I have to add in his social security to her mgi to figure household income and the aca repayment. Not sure I can put enough into an ira to avoid repayment with dependent's ss amount. I believe if she had not had insurance, the affordability exemption would have kept her out of the penalty.

[TaxGuyBill]

but do I have to add in his social security to her mgi to figure household income and the aca repayment.

No. You only add the dependent's income if the dependent is required to file a tax return due to having income that is over the "filing threshold" ($6350, and Social Security does not count).

[Twin Turbo Z]

Thats a lot of monies to pay back !!. Didn't declare all her income when she signed up ?

[ttbtaxes]

I thought I recall there being limits to the amount you paid back. At the outset of ACA, didn't people try to game the system by understating their projected income? When the real income came to light at tax time there was a ceiling to what they had to pay back and it was not the full amount of the APC.

[New York Enrolled Agent]

I thought I recall there being limits to the amount you paid back. At the outset of ACA, didn't people try to game the system by understating their projected income? When the real income came to light at tax time there was a ceiling to what they had to pay back and it was not the full amount of the APC.

I believe if your income exceeds 400% of the applicable poverty level income, there is no limitation on paying back the PTC.

[JenMO]

that's right, if over 401% poverty, you pay back all. I've seen a couple magi $65000 would have to pay back $27,000. if they have magi of $60,000 they are ok.
That's the AFFORDABLE care act. Is it right that you have to pay $3000 per month for health insurance if you have an adjusted gross of $70,000? Self employed people are finding it almost impossible to find affordable health insurance. Using lots of IRA's and HSA'S and seps.

[JenMO]

sorry about the soap box

[Twin Turbo Z]

I agree 100% !!! Been a sore subject in our neck of the woods too.

[Rapid Robert]

Self employed people are finding it almost impossible to find affordable health insurance. Using lots of IRA's and HSA'S and seps.

Yes, they would be much better off with a cheap, junk policy that doesn't cover anything major. And we are all much better off simply complaining about it instead of voting for a Congress that does its job to fix the problems and improve it. Sore subject, indeed.