deathbyaca14
Expert
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I dind't use to be cross eyed.
Who is ObamaCare For? The Middle Class....
- Thread starter taterpeeler
- Start date
I dind't use to be cross eyed.
So, just got off the phone with a client due to rate increase. Running into money problems. Income in 12' was 15k, eligible for medicaid. Being forced to sell a home at 200k profit. Suggested she talk to accountant, but it looks like she should sell the home and take the income in 13', so her income goes back down in 14', so she can get heavily subsidized or get on medicaid in 14'.
From what I'm reading in the attached document, it's based on 14' income (not 12' or 13'). So, if you have built up gains, you better sell this year. More pressure on stock and home gains.
From what I'm reading in the attached document, it's based on 14' income (not 12' or 13'). So, if you have built up gains, you better sell this year. More pressure on stock and home gains.
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that doc is from 2011...... and its written in annhspouse language.... you got any thing more like current?
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Ann placed the current federal guidelines link in the "Obamacare Resources" thread. That was an ultra-generous deposit of information from her last night, don't cha think?
I searched, since you b lazy. But I think you better sell that ranch property next to the Bush's this year.
I came back to the proposed app (on Page 4) and app instructions (page 25). Starting on page 25-32 it discusses income. It looks like it pulls tax info from 2012, but then asks what is "expected" monthly income in "coverage year". And remember, it's an APTC, an "Advanceable Premium Tax Credit", meaning you're getting an advance based upon your income in the future. I've attached the docs again here.
From the app
YEARLY INCOmE:
If the income you listed on this page is not steady from month to month, please tell us what you expect the yearly
income to be. For example, some people expect their income to change because they only work some months of the
year. If you don't expect changes to your monthly income, skip to Step 3.
PERSON 1's total income this year
$
PERSON 1's total income next year
The reference to "annh spouse language" is funny. For those who don't know, my husband is an accountant...
Anyway, I'm not sure that proceeds from the sale of a primary residence will count as "income" for medicaid eligibility in 2014. The document that YAgents linked talked about the definition of "income" for various social programs, and how it differs, depending on what type of assistance you are applying for. The government is attempting to centralize applications for Medicaid, CHIP and Exchange subsidies by using a single definition of income. From my understanding, in 2014, "income" will be MAGI (Modified Adjusted Gross Income), which for the purpose of these programs is:
This comes from a relatively old document from the CCIIO division of CMS dated 11/29/2011. The quote above is on page 6, 3rd paragraph. I THINK this is still accurate, because this document is still found in the CCIIO.CMS.gov resources section. I am quite certain that it is still correct for subsidies, but YAgents' case was medicaid eligibility not subsidy. In YAgents case, I would rather see his client get it directly from a lawyer than trust my memory!!! If anyone can confirm the accuracy of this data, and/or correct my information for me, please do that so we all will benefit from it.
http://cciio.cms.gov/resources/files/Files2/11282011/exchange_q_and_a.pdf.pdf
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Allen, you are very kind. Thank-you. The resources I listed have been invaluable to me, and I hope that list benefits the rest of you. However, I'm not sure I linked to the document that YAgents needs for his case. If I did, help me find it!!
Anyway, I'm not sure that proceeds from the sale of a primary residence will count as "income" for medicaid eligibility in 2014. The document that YAgents linked talked about the definition of "income" for various social programs, and how it differs, depending on what type of assistance you are applying for. The government is attempting to centralize applications for Medicaid, CHIP and Exchange subsidies by using a single definition of income. From my understanding, in 2014, "income" will be MAGI (Modified Adjusted Gross Income), which for the purpose of these programs is:
"...the adjusted gross income shown on the Form 1040 with additional amounts added: any tax-exempt interest on State or local bonds, social security benefits that are excluded from gross income, and any amounts earned abroad that are otherwise excluded from adjusted gross income."
This comes from a relatively old document from the CCIIO division of CMS dated 11/29/2011. The quote above is on page 6, 3rd paragraph. I THINK this is still accurate, because this document is still found in the CCIIO.CMS.gov resources section. I am quite certain that it is still correct for subsidies, but YAgents' case was medicaid eligibility not subsidy. In YAgents case, I would rather see his client get it directly from a lawyer than trust my memory!!! If anyone can confirm the accuracy of this data, and/or correct my information for me, please do that so we all will benefit from it.
http://cciio.cms.gov/resources/files/Files2/11282011/exchange_q_and_a.pdf.pdf
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Allen, you are very kind. Thank-you. The resources I listed have been invaluable to me, and I hope that list benefits the rest of you. However, I'm not sure I linked to the document that YAgents needs for his case. If I did, help me find it!!
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I will have to ask my husband when he gets home, but my understanding is that sale of a primary personal residence is not included in AGI. If I remember correctly (I usually tune him out on details like this so my memory may not be correct!!), the primary personal residence must be held for a specific number of months to qualify as non-taxable in that situation.
Investment property is another issue altogether, because it is not a primary personal residence. But if I understand your client's situation, you are talking about sale of her primary personal residence.
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Okay, he's home. He said that the gain from the sale of a primary personal residence flows to income, except that a single person can exclude $250,000 and a married couple can exclude $500,000 of the gain, provided that they owned and lived in the primary personal residence for more than 2 full years. When the gain flows to Schedule D, the gain can be offset from any losses in investments, so not all that gain may end up flowing to gross income (and therefore AGI), even if they exceeded the $250,000 or $500,000 exclusion mentioned above. There are some other details, like the 2 year period can be any 2 year period in the previous 5 years, and there are exceptions for people with health issues, etc. So, she might want to consult an accountant.
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Correct me if I am wrong, but something I see from the APTC aspect of this is huge tax implications when you go to file. What I mean is if I project my 2014 income to end up being 300% of FPL, I get a subsidy, but when I file my 2014 taxes it ends up being 402% making me ineligible for a subsidy, will I have to pay back my subsidy? In my mind the subsidy would have to be paid back; if not, I will project my income to be only 200% of FPL every year. Can you imagine the implications when the leading cause of bankruptcy moves from medical bills to having to pay back premium subsidies because estimating my income is off and I have to pay back thousands of dollars in subsidy? Do you honestly think people will be paying close attention throughout the year to make sure what they inputted in October is true throughout the year?
