Obamacare PTC in year you turn 65

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Roger Fitzsimmons

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May 30, 2021, 10:10:05 PMMay 30
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The Obamacare premium tax credit depends of course on your income. Is there any adjustment to this calculation in the year you turn 65 and exit Obamacare for Medicare?

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Alan

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Jun 8, 2021, 4:28:04 PMJun 8
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On 5/30/21 7:09 PM, Roger Fitzsimmons wrote:
> The Obamacare premium tax credit depends of course on your income. Is there any adjustment to this calculation in the year you turn 65 and exit Obamacare for Medicare?
>
There is no adjustment per se. The calculations compute the annual
amount. That amount then gets spread equally by month. So, assuming you
stop the subsidy (advance premium tax credit) in the last month you have
ACA insurance, the tax return reconciliation to determine your net
premium tax credit (more credit or pay back money) will only use the
months you were on an ACA health plan.

Roger Fitzsimmons

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Jun 15, 2021, 7:13:32 PMJun 15
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On Tuesday, June 8, 2021 at 4:28:04 PM UTC-4, Alan wrote:
> On 5/30/21 7:09 PM, Roger Fitzsimmons wrote:
> > The Obamacare premium tax credit depends of course on your income. Is there any adjustment to this calculation in the year you turn 65 and exit Obamacare for Medicare?
> >
> There is no adjustment per se. The calculations compute the annual
> amount. That amount then gets spread equally by month. So, assuming you
> stop the subsidy (advance premium tax credit) in the last month you have
> ACA insurance, the tax return reconciliation to determine your net
> premium tax credit (more credit or pay back money) will only use the
> months you were on an ACA health plan.

So if you are on Obamacare for 6 months, your "Annual Contribution" will be calculated based on your full year's income, but then divided by 2? But if your income is significantly different in the first half of the year versus the second half, that wouldn't be taken into account?

Alan

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Jun 16, 2021, 1:04:37 PMJun 16
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On 6/15/21 4:12 PM, Roger Fitzsimmons wrote:
> On Tuesday, June 8, 2021 at 4:28:04 PM UTC-4, Alan wrote:
>> On 5/30/21 7:09 PM, Roger Fitzsimmons wrote:
>>> The Obamacare premium tax credit depends of course on your income. Is there any adjustment to this calculation in the year you turn 65 and exit Obamacare for Medicare?
>>>
>> There is no adjustment per se. The calculations compute the annual
>> amount. That amount then gets spread equally by month. So, assuming you
>> stop the subsidy (advance premium tax credit) in the last month you have
>> ACA insurance, the tax return reconciliation to determine your net
>> premium tax credit (more credit or pay back money) will only use the
>> months you were on an ACA health plan.
>
> So if you are on Obamacare for 6 months, your "Annual Contribution" will be calculated based on your full year's income, but then divided by 2? But if your income is significantly different in the first half of the year versus the second half, that wouldn't be taken into account?
>
Reconciliation is based on your annual income. The resultant number is
then divided by 12 to get the monthly amounts. Assuming you timed it
perfectly, 6 months on and then 6 months off ACA insurance when you went
on Medicare, your 1095-X would just show data in the columns for January
through June.
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