The Money Mustache Community

General Discussion => Post-FIRE => Topic started by: Body Surfer on November 26, 2019, 04:50:50 PM

Title: ACA question
Post by: Body Surfer on November 26, 2019, 04:50:50 PM
Concerning qualifying for ACA subsides, how does the gov't figure income? Entire year's earnings or starting fresh in May thru Dec? I am concerned the gov't counts work earnings Jan-May into consideration, thereby eliminating our chances for subsides for 2020.

Any thoughts of this?
Title: Re: ACA question
Post by: Paul der Krake on November 26, 2019, 04:52:10 PM
Entire year.

https://www.healthcare.gov/income-and-household-information/
Title: Re: ACA question
Post by: seattlecyclone on November 26, 2019, 07:43:03 PM
Yes, the ACA marketplace subsidies are based on your entire year's income.

However, Medicaid looks at your month-to-month income. If you live in a state that adopted the ACA's Medicaid expansion and can get your monthly income down below 138% of the poverty level for that half year you should become eligible for that.

Conversely, if you prefer not to be pushed onto Medicaid, you may want to spread your Roth conversions/capital gains/etc. throughout the year rather than doing one lump sum.