Subsidy – Tax Credit – Calculation

subsidy.calculation.1

Video Explanation Tax Credits – Subsidies to buy Health Insurance are  generally available if your income  is under $45k for one person & $95k for a family of 4. 

To find out the amount of your subsidy (Calheers) calculation  just put in your zip code and dates of birth in our FREE Instant CA Quote Engine   (Nationwide use KFF.org)  you will instantly  get the actual premiums, benefits, co-pays, deductibles & coverage’s and can compare plans side by side, click here for Enhanced Silver upgrades.

Then email us your estimated Family – Household  Income for 2014 – MAGI Line 37 of your Tax Return.  We will send you within two working hours your subsidy calculation just like that shown above.   Then just subtract the monthly subsidy from the premiums you instantly viewed from our free quote engine.

Open Enrollment lasts till 3.31.2014, with coverage starting “basically” AB 1461 the 1st of the month after you enroll.  This website and our expertise is furnished to you at NO extra charge.  We get paid when you select us as your Certified Insurance Agent.

Definitions

Certified-Agent-Logo

So, basically, what the above calculation shows is that the “average silver” plan – Benchmark Rate would run this couple $397 from which they can subtract the Advance Premium Tax Credit of $303 for a net premium of $94/month, as also shown in the Max % of Income.

FPL means Federal Poverty Level – Chart which is used to determine if you qualify for Medi-Cal or the kids do.

Married Couples MUST file jointly to qualify for Tax Credits. (Scroll down after clicking link)

Cost Share Reduction – Normally the Silver Plan pays 70% of the expenses for Essential Health Benefits for your age & zip code.  Depending on income, Silver level can increase, up to 94%.   

Metal Levels?

The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit. irs.gov  FAQ’s   Learn more on how and when to use the Credit.

kaiser.foundation.subsidy.explanation

If you already have affordable insurance (less than 9.5% of income for EmployEE and covers 60% of expected costs) from your employer or a government program like Medicare,  MedicaidMedi Cal  you won’t be able to get the Premium Tax Credit, coveredca.com   but you can still purchase guaranteed issue coverage using the premium and beenfits shown.

One BIG advantage to EmployER provided coverage is that it comes to you and your boss as a TAX FREE Benefit.   Have your employer contact us for a free consultation and proposals. If you are contributing to your Employer’s Group Health Plan, your contributions can be Tax Deductible with a Section 125 POP (Premium Only) Plan.

CHFC study 8.14.2013 estimates 50% of applicants will get subsidies. 

Learn more on Getting Financial Help Credits and Subsidies from Covered CA (The Exchange)

 

 

Not in CA?  Use the Kaiser Foundation Calculator    -  Sample Calculation WITH Explanations of how it works

http://laborcenter.berkeley.edu/healthpolicy/calculator/

Individual & Families can also deduct premiums and expenses that are over 7 1/2 % of adjusted gross income.  IRS publication 502 html pdf10%PPACA 9013

Price sticker shock?

Check out Health Savings Account’s (HSA’s) to have the deductible tax advantaged.

More on Individual Tax Credits
Tax Credit Calculator

Consumer Links

§1.36b-1 Premium tax credit definitions
Definitions Household Income

Check out related pages

Subsidy Chart for Individuals

http://healthreformquotes.com/ppaca-general-researchtax-credit-for-individuals-htm/income-chart-advance-premium-credits-sample-premiums/

 

Tool to review what’s better – Group or Individual Compliance

http://healthreformquotes.com/small-business/health-reform-resources-small-biz/employer-vs-individual-coverage-under-health-care-reform/

 

Quotes for Group Insurance – Just send us your census

http://www.quotit.net/eProGroup/login.asp?brokerID=23433638&license_no=0596610

 

Participation Rules – I haven’t seen any yet for 2014 – SHOP is 70%

http://healthreformquotes.com/small-business/health-care-reform-ab-1083-1-1-2014-and-future/carrier-requirements-non-grandfathered-plans/participation-contribution-requirements/

 

Mandatory (Should) notice to give employees about Health Care Reform

http://healthreformquotes.com/small-business/health-reform-resources-small-biz/mandatory-notice-to-employees-health-care-reform/

 

Employer Tax Credit

http://healthreformquotes.com/small-business/small-business-tax-credit/

 

Technical & Research Links

3 comments on “Subsidy – Tax Credit – Calculation
  1. Why CA doesn’t charge extra for smokers as allowed by Health Care Reform – No subsidy for smoking surcharge!

    http://www.npr.org/blogs/health/2013/05/06/179232447/california-smokers-won-t-face-extra-insurance-charge-under-obamacare

2 Pings/Trackbacks for "Subsidy – Tax Credit – Calculation"

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>