Question of how Income is Determined for Aca?

[goget]

I think with my original question i'm correct.Magi is determined from line 37 adjusted gross income adding in certain disallowed items. Anybody with a carry forward loss or nol its goes on line 21 as other income NOl thus making your total income negative on line 22( that's taking your nol and adding all your income up).Since your total income is negative your agi is negative. I see no were in obamas magi calculation were it disallows a Nol thus for subsidy calculation you have no income . Lets discusss this as even cpa's seem clueless on how to calculate this.

 

[MaryDallas]

Believe it or not: H&R Block and Jackson Hewitt have been knowledgeable on how to deal with ACA. The representatives were in classes all year long about Health Care Reform. They even advertise to come in and discuss how to deal with ACA in doing your taxes with no obligation to do business with them. I've sent a few confused people to them just for information purposes.

I am finding some of the independent CPA's are not up to speed. I've even had clients say their CPA said they were not going to deal with all that.

And what about that client that shows a loss on Line 37? I had a client in 2014 tell me they made $45,200 per year .... on Line 37. And then, in 2015 they turned around and told me they have never shown a profit; they always show a loss. I told them it was my understanding that they would need to show a profit of the minimum amounts for two people or they would not be eligible for a subsidy. At that point they turned around and told me: 'No; we made $45,200.'

I sent her a confirmation email (and kept for my file) that I was informed their income was $45,200. We went around in circles on this one. They do not want to pay taxes; they do not want to pay full price for health insurance; they do not want to pay themselves a 1099 income to show income. They were impossible.

I asked the IMO what to do: they suggested the email confirming their income; it's theirs to deal with. When they are found out they will have to pay all of those subsidies back, which I did tell them. I never could get a straight answer from them. I suggested they go to H&R Block just to get advice, however, they did not want to use H&R Block. I told them you do not have to use H&R Block; just get some advice on how your income needs to be submitted. She tried to talk to their CPA but the CPA knew nothing.

Scary stuff sometimes.

 

[goget]

Dang Mary you're right. You have to show a profit of $12k for a single person or you can't get aca? So for somebody who showed a lose on line 37 let had earned income of $15k can the get aca? I have a friend who has huge carry goest loses but shows some yearly earned income and this is his first yr getting aca and he pays $14 a month

 

[MaryDallas]

Exactly: these people are working their way into a corner. It is a husband/wife team that own a golf cart business. I even suggested the husband pay the wife some 1099 income for admin, or whatever .... no, they didn't want to pay taxes. They are from Australia and have 'free health insurance' there. They are dual citizens. They will be terminated I'm sure when they send in their income verification. They filed an extension and called in to say they would send it in after the extension. This is when all of this cropped back up from 2014.

Their health insurance is $1200-$1400/mo. without the subsidy. They are in their mid-60's. Had a bad case of the 'I can't': can't pay the $1200-$1400 premium; can't pay the high deductibles or premiums off exchange; can't make it if we have to pay taxes; they were feeling really trapped by the whole thing. And they will not have even any Social Security money at 65 much less retirement income. Initially, I thought they were pretty sharp people.

 

[redeemed]

I worked with an attorney for ACA this open enrollment who grosses 300k per year but his wife manages 60 properties, this year, they declared a loss of 137k despite her husbands earnings. Her property management actually did very well last year, it just didn't show it on paper. They are both in the 5% but are now on medicaid after our meeting due to how the subsidies play out.

 

[Yagents]

"Millionaires on Medicaid"..........gotta love it

 

[tonyisme]

Yup....my CPA decided it wasn't worth the risks to him, and the extra work fo him. He would have to charge extra to the client Plus the fine is a minimum of $500 to the CPA if the CPA makes a mistake and the government calls them on it. Plus anybody that drinks the subsidy Kool Aid can not file a tax extension. note I am NOT giving tax advice I'm just repeating what I have been told. :O
My CPA realized that life is too short to take on this..

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Over the past 20 years I have talked to maybe 20 Australian citizens and none of them became my clients... I will offer you a tip.... Citizens of Australia, the UK, some European countries where they are not already paying insurance these people are not easy to sell to at all. and most of the time they don't buy anything. The typical excuse is it they can return home and be covered.
But no commercial airliner is going to let them get on board laying down. This is one reason why you and I have such high premiums for health insurance. One of the largest claims I've ever seen was a Canadian racking up a multi-million dollar bill in an Arizona hospital and it went unpaid. A medical relocation out of the hospital bed to their home country is going to screw up their visa or greencard and it is recorded in a database. everybody thinks it's just Latin America citizens. But a person hospitalized who is a foreign citizen and is on an immigration visa their medical history is going to be recorded in some national database which is accessible by immigration. it happened to one of my clients and it is happens to a lot of people. US Consular offices in foreign countries can access databases which contain medical information and other records. you can take that to the bank I don't know how other states do it but that's how they do it here. If the foreign citizen is here on a business visa their immigration attorney is going to tell them to acquire medical insurance. I'm about 98 percent sure of that. so they might not listen to the health agent but they will listen to their immigration attorney.

 

[MaryDallas]

"Millionaires on Medicaid"..........gotta love it

No kidding: I've seen that, too.

 

[goget]

Confused again. So if somebody made $100k in earned income and had $300k in nol so a negative $200k in agi they can get Medicaid?I thought they only looked at your earned income?

 

[redeemed]

They do ask about profit or loss from a home business, In the case of my attorney "friend" he only took 32k of "profit" from his practice, even though he grossed over 300k. His wife claimed a loss of 105k from her property management, I wish I had his tax situation, they paid less in taxes than my wife and I, and we don't earn anywhere near that.