tag:blogger.com,1999:blog-6747929661464411700.post7022879560952527574..comments2023-03-23T07:14:38.482-04:00Comments on The Super Tax Genius: Affordable Care Act, Obamacare update and adviceSuper Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.comBlogger18125tag:blogger.com,1999:blog-6747929661464411700.post-90016931403834163212014-02-27T22:03:35.031-05:002014-02-27T22:03:35.031-05:00I hesitate to absolutely confirm this until they i...I hesitate to absolutely confirm this until they issue forms, but that is my interpretation at this time.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-15679547880655702014-02-27T17:33:37.913-05:002014-02-27T17:33:37.913-05:00My concern is at the low end of income to make sur...My concern is at the low end of income to make sure I stay above the minimum income level ($15900 in California) to qualify for the ACA Tax Credit. Although the Self-employed health insurance deduction may still be allowed in 2014, I am not required to take it or any other optional deduction for that matter, including IRA or SEP. By paying $600 more in income tax via the AGI (line 37) I will get a $8200 ACA tax credit resulting in a $7600 refund. Correct me if this is not right! Seems insane and many people will probably not understand this BIG issue for the low income self-employed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-79535087747460495192013-12-30T21:28:16.889-05:002013-12-30T21:28:16.889-05:00Make sure you check out The Weird Obamacare Strate...Make sure you check out The Weird Obamacare Strategies and Incentives series...Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-12069698723009416322013-12-30T14:43:59.853-05:002013-12-30T14:43:59.853-05:00Not trying to get into the politics of it, just tr...Not trying to get into the politics of it, just trying to find tax advantages.... guess I'll keep looking. Thanks for the quick reply!Anonymoushttps://www.blogger.com/profile/14894832456157362357noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-18857318827642034082013-12-30T13:32:56.497-05:002013-12-30T13:32:56.497-05:00The Supreme Court found the individual mandate con...The Supreme Court found the individual mandate constitutional because it considered the penalty for failing to comply with it to be a tax. It did not rule on any other parts of Obamacare wrt their being a tax or not. FYI - nothing posted on this blog should be considered as a political opinion in support of or against the law - this isn't that kind of a blog (though the border gets fuzzy sometimes...)Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-19499100422820453512013-12-30T12:59:31.414-05:002013-12-30T12:59:31.414-05:00I need someone smarter than me to explain this.......I need someone smarter than me to explain this.... If the affordable care act was passed into law based on the fact that the supreme court considers it a tax. Than shouldn't any premiums I have to pay be considered a tax? Therefore I should be able to deduct all my premiums i pay to comply with this new "tax law"? If not, isn't that double taxation? Anonymoushttps://www.blogger.com/profile/14894832456157362357noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-58916207538797725262013-10-14T08:00:52.996-04:002013-10-14T08:00:52.996-04:00Most MAGI calculations have a separate table or fo...Most MAGI calculations have a separate table or formula you use. The problem we're having is that we can't see how they plan to do it until 2014 tax forms come out, so we're left guessing. There will be a simple way to do it. It's done for many other situations where a MAGI is required.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-91944389694071318932013-10-14T00:40:43.832-04:002013-10-14T00:40:43.832-04:00sorry 37c = 37b-37a and 37d=37-37csorry 37c = 37b-37a and 37d=37-37cAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-39102346021599697592013-10-14T00:38:43.320-04:002013-10-14T00:38:43.320-04:00the only solution is line 29 disappears before lin...the only solution is line 29 disappears before line 37<br />govt is saying we are calculating ur subsidy based on everything excluding health care premiums of every kind<br />then on line 37a, you get your subsidy, and on line 37b you list all your premiums and dental premiums and 37c, u subtract 37c-37b=37d, and 37e is your new health care adjusted AGI which is 37-37d which has no meaning to determing subsidies...only income tax<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-47122836344699351942013-10-14T00:19:50.059-04:002013-10-14T00:19:50.059-04:00Ok but this seems like a never ending loop...You c...Ok but this seems like a never ending loop...You can't calculate the unsubsidized portion of health care premiums until you know your subsidy calculation which is based on your MAGI.....but you cant get a MAGI if you cant deduct line 29 for unsubsidized portion of health care premiums....mathematically impossible equations hereAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-35288488672514247312013-10-10T18:14:09.743-04:002013-10-10T18:14:09.743-04:00Thanks. That's what I am thinking would be the...Thanks. That's what I am thinking would be the case, but I haven't been able to find anything in writing from an official source (such as an IRS bulletin, regulations, or publication on the exchange) that documents this. So if you have anything you can cite to, (regulation, etc.) -- it would be a huge help. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-90048454658194461952013-10-10T09:04:22.106-04:002013-10-10T09:04:22.106-04:00The SE Health Insurance deduction is not included ...The SE Health Insurance deduction is not included when figuring the subsidy. It will most likely be an addback to AGI. Haven't reviewed new forms or software yet so difficult to discuss the actual mechanics of it.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-70553407875488751852013-10-10T03:23:53.758-04:002013-10-10T03:23:53.758-04:00You wrote: "The Self Employed Health Insuranc...You wrote: "The Self Employed Health Insurance Deduction is still available but only applies to unsubsidized portion of insurance payment." -- do you have any documentation or references to explain how this will work?<br /><br />I'm confused about how the math will work for a self-employed person whose eligibility for subsidies is impacted by the health insurance premium itself. <br /><br />That is, assume a single, self-employed person whose AGI after all allowable deductions other than self-employed health insurance is $55,000. Assume the taxpayer purchases a policy on the exchange, and the full cost of premiums for the year is $10,000. (To make it easy, assume that the taxpayer has bought the 2nd lowest cost silver plan on the exchange, which is the benchmark for determining the maximum tax credit amount)<br /><br />The SE health insurance deduction would then reduce income from $55,000 to $45,000, rendering the taxpayer eligible for an advanced tax credit. As 9.5% of $45,000 = $4,275, the tax credit would then be $5,725.<br /><br />But if the same taxpayer anticipates that his income will make him eligible for a credit, and opts to take an advance credit -- let's say, $4000 being applied to premiums, then the unsubsidized portion of the premiums is $6000. If that amount is entered as the schedule 1040 deduction, then the AGI is $55,000 - $6,000- which is $49,000 -- above 400% of the FPL and ineligible for the subsidy. In that case the taxpayer actually accepts a subsidy that is less than the amount that he would be entitled to in the first example -- but he ends up losing the subsidy and owing the $4000 back. <br /><br />This doesn't make sense to me -- the person should be eligible for the same amount in either case -- either he wasn't entitled to the credit in the first place, or he is alway entitled to it. <br /><br />Obviously this is important to a lot of taxpayers who have incomes in that range.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-80785550813504358262013-10-06T20:21:17.430-04:002013-10-06T20:21:17.430-04:00I hate to say this, but, the best information is o...I hate to say this, but, the best information is on irs.gov, healthcare.gov, and reading the law.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-77449406309431088852013-10-06T12:54:41.569-04:002013-10-06T12:54:41.569-04:00Thank you, Genius? I agree that it's probably ...Thank you, Genius? I agree that it's probably best to take the deduction rather than an advanced subsidy, particularly if on subsidy qualification border, but the low rates for some will be too enticing. I suppose good communication with the exchange throughout the year will help reduce the likelihood of unfortunate surprises come tax filing time. I am surprised there isn't more discussion on the net on this topic. <br />Where can I find more information?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-82635766544831041802013-10-05T22:50:17.547-04:002013-10-05T22:50:17.547-04:00The Self Employed Health Insurance Deduction is st...The Self Employed Health Insurance Deduction is still available but only applies to unsubsidized portion of insurance payment.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-21121197284472348882013-10-05T16:36:59.245-04:002013-10-05T16:36:59.245-04:00You do not have to take the subsidy in advance and...You do not have to take the subsidy in advance and can take it on your tax return (I actually recommend this if you can afford to do it.)<br /><br />I don't want to jump on your other questions without a little research, so I will get back to you...Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-77505692979767671882013-10-05T15:09:05.339-04:002013-10-05T15:09:05.339-04:00I have not found a good explanation on how the sel...I have not found a good explanation on how the self-employed health insurance deduction (1040 Line 29) will be affected for tax year 2014 and beyond, assuming a premium subsidy is taken. Is the self-employed insurance deduction allowable? If so, is it safe to assume a deduction can only be taken on the non-subsidized portion of the premium?<br /><br />Also, some have brought up the question on whether it is possible to forego the ACA premium subsidy throughout the year (assuming qualification for a subsidy and participation in the exchange) and instead claiming a large return, health insurance premiums plus qualified subsidies, at the time of filing. Is this the case?Anonymousnoreply@blogger.com