Author Topic: Healthcare Questions  (Read 1559 times)

Left Bank

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Healthcare Questions
« on: January 03, 2015, 02:35:32 PM »
Hi All,
We recently retired and have enough cash on hand to live for at least the next 1-2 years without touching any investments.  Technically, my earnings for 2015 are going to be very low (18-22K from rentals) so how should I answer the question  of whether or not we will earn over $66K next year on the healthcare website to assess potential healthcare subsidies? Will we qualify since our tax returns will show very little income?  Will net worth or investments be considered in the calculation? 
Thanks
LB

renewintere

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Re: Healthcare Questions
« Reply #1 on: January 03, 2015, 03:39:41 PM »
In CT, and probably in general, assets are not included in the calculation of your income. However, if your income is too low it may qualify you for medicaid and you won't have choice for a subsidy. Calculate your MAGI-modified adjusted gross income (google it for the lines to add up on your tax rtn) and that is what your income will be based on. At least that's what I did when I applied. Also, look up the Federal Poverty Guidelines to see where your income falls. Biggest thing is to review your state's requirements. Hope this helps!

Left Bank

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Re: Healthcare Questions
« Reply #2 on: January 05, 2015, 07:24:20 AM »
Thanks Rene.  Would you happen to know if capital gains from the sale of an investment property would be considered income in according to the law?

forummm

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Re: Healthcare Questions
« Reply #3 on: January 05, 2015, 10:05:55 AM »
The income for expansion Medicaid eligibility and for the premium tax credits is the modified adjusted gross income that you would report on your tax return. It is essentially your AGI (as reported on 1040) but adding back certain tax-exempt income like Social Security, interest, and foreign income.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Passive-Activity-Loss-ATG-Exhibit-2-2-Modified-Adjusted-Gross-Income-Computation
https://www.healthcare.gov/glossary/modified-adjusted-gross-income-magi/

Random

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Re: Healthcare Questions
« Reply #4 on: January 06, 2015, 05:18:28 PM »
When I read through the links the previous poster provided, it looks like money taken from a 401k account would be considered income.  I presume that money from an investment account would not be included as income except any capital gains associated with it.  Does this seem correct?