Subsidy Midyear After Not Asking for One?

[SeniorGurl]

If someone is enrolled in a plan on the exchange and is not asking for an initial subsidy, can they go back in at some point in the year and ask for one if their income is not what they thought it would be?

Thanks in advance!

 

[timsip]

If someone is enrolled in a plan on the exchange and is not asking for an initial subsidy, can they go back in at some point in the year and ask for one if their income is not what they thought it would be?

Thanks in advance!

It might make sense at this point to just apply for 2015 subsidy and collect the 2014 subsidy on the tax return. You might have to do a 2014 application to accomplish this, but I am not certain.

 

[G.Gordon]

Unclear on the points you are asking.

If you are saying that they elected to not apply the subsidy to their monthly premiums at the time of application, can they go back and apply them later?

If so, the answer is yes.

 

[timsip]

Also important is that they had to purchase on exchange from the beginning. I also was thinking that at this point, the December premium is likely pidgin, so no subsidies would be provided. A little late in the game to reduce premiums for 2014. Go apply, select to not have it immediately and have it applied to the tax return. Start over for 2015.

 

[Ann H]

I agree. However, if they already purchased on the exchange, which is what the original poster implied, I would definitely have them fill out the financials for 2014 and ask for a subsidy. That way you have a clear trail for filing 2014 taxes. The subsidy is annual, even though it can be advanced monthly. So, even thought it's December before they realize they would qualify, they are eligible for the full year's subsidy, so long as they enrolled in a QHP on the Exchange. I think that's the situation. The original poster said, "

If someone is enrolled in a plan on the exchange and is not asking for an initial subsidy, can they go back in at some point in the year and ask for one if their income is not what they thought it would be?

Thanks in advance! ​

 

[timsip]

I agree. However, if they already purchased on the exchange, which is what the original poster implied, I would definitely have them fill out the financials for 2014 and ask for a subsidy. That way you have a clear trail for filing 2014 taxes. The subsidy is annual, even though it can be advanced monthly. So, even thought it's December before they realize they would qualify, they are eligible for the full year's subsidy, so long as they enrolled in a QHP on the Exchange. I think that's the situation. The original poster said, "

If someone is enrolled in a plan on the exchange and is not asking for an initial subsidy, can they go back in at some point in the year and ask for one if their income is not what they thought it would be?

Thanks in advance! ​

Right, but they won't receive any benefits until tax return is filed. I want it to be clear uncle Sam isn't going to be cutting the client a check for the annual subsidy amount. It will be applied to the tax filing.

All of this is theoretical of course. This is what the law says. But then the law says a lot of things that are not always the reality.