The Obamacare Trick Early Retirees Should Know – Yahoo News
By Robert Berger
Qualifying for the subsidy. There are two features of Obamacare\’s premium tax credits that are important for early retirees to understand. First, the highest household income that can qualify for a subsidy is 400 percent of the federal poverty level. In 2013, that amount for an individual is $45,960 and for a family of two is $62,040. It’s likely to be slightly higher in 2014. If a household income exceeds 400 percent of the federal poverty level by even one dollar the subsidy is lost.
Second, the amount of a subsidy decreases as household income increases. For example, household incomes between 200 and 250 percent of the federal poverty level will be required to pay 6.3 to 8.05 percent of income toward health insurance premiums, according to the Kaiser Family Foundation. Household incomes between 300 and 400 percent must contribute 9.5 percent of income toward premiums.
Armed with this knowledge and a little tax planning, some early retirees may be able to save a bundle. For those just over the 400 percent threshold, reducing household income could result in hundreds or even thousands of dollars in subsidies. For others already under 400 percent, reducing household income further may be an effective way to increase their subsidy.
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Obamacare, yes, leave it to Democrats to encourage Americans to purposely underachieve in exchange for handouts. A married couple more likely to qualify for subsidies if they divorce? Amazing, simply amazing. Truly sickening.