Reading Form 8962 - No Clawback for Under 100%

[russelltw]

These are the instructions for completing the 8962. I have read thru it and it appears not to penalize those who make under 100% FPL.

http://www.irs.gov/pub/irs-prior/i8962--2014.pdf

starts on page 5, bottom of left column and top of right under "line 6".

Am I reading this correctly?

 

[AllenChicago]

You are correct RussellTW. Glad you started a thread about this subject, because previous mentions are buried in other threads. This is an easily exploited "glitch" in the APTC/Subsidy rule, for those with really low incomes.
ac

 

[Yagents]

Anyone else notice a pickup of people making $11,671 ?

 

[AllenChicago]

Anyone else notice a pickup of people making $11,671 ?

In Illinois, seeing a lot of $16,500.

 

[dgoldenz]

You are correct RussellTW. Glad you started a thread about this subject, because previous mentions are buried in other threads. This is an easily exploited "glitch" in the APTC/Subsidy rule, for those with really low incomes.
ac

x2

Anyone with $10k income can just claim $12k and won't have to pay anything back. Easily exploited by someone with an hourly wage or low self-employed income that knows about this.

 

[taterpeeler]

You got to prove your income dogg... Yea yea yea.... Cant prove squat at 10k

 

[AllenChicago]

You got to prove your income dogg... Yea yea yea.... Cant prove squat at 10k

Right. All subsidy recipients have to file a tax return for the year in which the subsidy is received, even if their income is under the filing threshold. If they don't, the IRS will seize their assets. (flat screen, rolex, etc.)

 

[AllenChicago]

I didn't know that Hospitals are forbidden from garnishing wages of patients below a certain government-defined income threshold.

Ref: Grassley to hospitals: Explain why you

So, someone who made $7,000 in 2014 can Estimate that he'll make 16,500 this year, buy a low deductible SILVER plan and get all the treatments and surgeries he needs.

Not only is the IRS forbibben from recapturing what the government paid for his health insurance, but the Hospital, Doctors, etc.. are forbidden from going after this guy's wages and "assets" as well.

 

[kgmom219]

I didn't know that Hospitals are forbidden from garnishing wages of patients below a certain government-defined income threshold.

Ref: Grassley to hospitals: Explain why you

So, someone who made $7,000 in 2014 can Estimate that he'll make 16,500 this year, buy a low deductible SILVER plan and get all the treatments and surgeries he needs.

Not only is the IRS forbibben from recapturing what the government paid for his health insurance, but the Hospital, Doctors, etc.. are forbidden from going after this guy's wages and "assets" as well.

Why would the hospital care if he is on a low deductible silver plan???

Sure they are out the $500 deductible and coins, but they probably have a $1500 OOP. So instead of giving the free treatment the law requires, they are only out a max of $1500. Prior to ACA, they got nothing.

Unless I'm missing something?

 

[AllenChicago]

Why would the hospital care if he is on a low deductible silver plan???

Sure they are out the $500 deductible and coins, but they probably have a $1500 OOP. So instead of giving the free treatment the law requires, they are only out a max of $1500. Prior to ACA, they got nothing.

Unless I'm missing something?

I didn't know that hospitals were prohibited from going after people with incomes under a certain level. Deductible & OOP are irrelevant. Just used Silver as an example, since those plans have reduced cost-sharing for low income recipients.