Technical topics regarding tax preparation.
30-Jan-2023 2:24pm
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I have a handful of 'high' income (+400% FPL) clients that have subsidized health insurance. In the olden days, these folks would have to pay back their subsidy. Now they only have to pay back a small amount due to the 8.5% limit.
Does everybody qualify for subsidized health insurance? Or are they making a mistake (or lying) when they apply for the coverage?
30-Jan-2023 3:02pm
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You are calculating the subsidy on the return so it is not about what income was reported. These rules are scheduled to revert in 2026 (I think that is the year).
Also in California the state version of form 1095A (form 3895) has been discontinued because the state is not providing subsidies over 400% poverty since the feds are.
30-Jan-2023 3:19pm
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I am talking about the Advanced PTC. Once they get it advanced, they only pay back a small amount.
30-Jan-2023 4:00pm
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Wiles wrote:Does everybody qualify for subsidized health insurance? Or are they making a mistake (or lying) when they apply for the coverage?
Yes it surprised me too - but looking through my clients, it appears that the marketplace insurance cost for a 64 yo can be up to 6 times the cost of a 30yo. Thus the 64yo is eligible for a subsidy at a seemingly high income, whereas the younger client would only be eligible at a low income. I imagine each state has its own nuances with insurance costs.
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