Healthcare Affordability Credits

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Subject Author Date Healthcare Affordability Credits Steve Pope 07-14-2009  Re: Healthcare Affordability Credits paulthomascpa 07-15-2009   Re: Healthcare Affordability Credits Steve Pope 07-16-2009  Re: Healthcare Affordability Credits PosiVista 08-13-2009   Re: Healthcare Affordability Credits Steve Pope 08-13-2009  Re: Healthcare Affordability Credits Seth 07-15-2009
Posted by Steve Pope on July 14, 2009, 7:55 pm Please log in for more thread options This isn't part of the tax law, yet, but introduced in the House of Representatives is healthcare legislation which includes "Affordability credits for low- and moderate-income individuals and families, available to those with incomes up to 400 percent of the federal poverty level, or $43,000 for individuals and $88,000 for a family of four." Does anyone have more information on this subject, or know where to obtain it? I'm interested in answers to questions such as, are these tax credits or some other sort of credit; is there also an asset test, and if so what sort of assets are excluded (home? retirement plans? etc.). Thanks, Steve -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by paulthomascpa on July 15, 2009, 8:41 am Please log in for more thread options > This isn't part of the tax law, yet, but introduced in the > House of Representatives is healthcare legislation which > includes "Affordability credits for low- and moderate-income > individuals and families, available to those with incomes up to > 400 percent of the federal poverty level, or $43,000 for > individuals and $88,000 for a family of four." > > Does anyone have more information on this subject, or know where > to obtain it? I'm interested in answers to questions such as, are > these tax credits or some other sort of credit; is there also > an asset test, and if so what sort of assets are excluded > (home? retirement plans? etc.). All good questions, which unfortunately won't be answered before the bill comes to a vote and is signed into law. <Political rant snipped by me before it was snipped by the moderator> -- Paul Thomas, CPA www.paulthomascpa.com -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Steve Pope on July 16, 2009, 1:16 pm Please log in for more thread options >> This isn't part of the tax law, yet, but introduced in the >> House of Representatives is healthcare legislation which >> includes "Affordability credits for low- and moderate-income >> individuals and families, available to those with incomes up to >> 400 percent of the federal poverty level, or $43,000 for >> individuals and $88,000 for a family of four." >> Does anyone have more information on this subject, or know where >> to obtain it? I'm interested in answers to questions such as, are >> these tax credits or some other sort of credit; is there also >> an asset test, and if so what sort of assets are excluded >> (home? retirement plans? etc.). >All good questions, which unfortunately won't be answered before the bill >comes to a vote and is signed into law. True, but it's interesting to see what it looks like as of the current draft. I've found H.R. 3200 on Thomas, and the Individual Affordability Credits are described in Subtitle C, starting with Section 241. It does not appear there is any asset test, and the credits are based on MAGI. MAGI requires that one add back in traditional IRA contributions, so this would seem to hit pensionless employees while favoring employees with pension plans and the self-employed. It also would seem the wealthy could have all their income come from municipal bonds and still collect affordability credits. These are of course things that are very likely to be revised as the legislation progresses. Steve -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by PosiVista on August 13, 2009, 2:09 pm Please log in for more thread options On Jul 16, 10:16 am, spop...@speedymail.org (Steve Pope) wrote: > >> This isn't part of the tax law, yet, but introduced in the > >> House of Representatives is healthcare legislation which > >> includes "Affordability credits for low- and moderate-income > >> individuals and families, available to those with incomes up to > >> 400 percent of the federal poverty level, or $43,000 for > >> individuals and $88,000 for a family of four." > >> Does anyone have more information on this subject, or know where > >> to obtain it?  I'm interested in answers to questions such as, are > >> these tax credits or some other sort of credit; is there also > >> an asset test, and if so what sort of assets are excluded > >> (home? retirement plans? etc.). > >All good questions, which unfortunately won't be answered before the bill > >comes to a vote and is signed into law. > > True, but it's interesting to see what it looks like as > of the current draft. > > I've found H.R. 3200 on Thomas, and the Individual > Affordability Credits are described in Subtitle C, starting > with Section 241.  It does not appear there is any asset > test, and the credits are based on MAGI.   > > MAGI requires that one add back in traditional IRA contributions, > so this would seem to hit pensionless employees while > favoring employees with pension plans and the self-employed. > > It also would seem the wealthy could have all their income > come from municipal bonds and still collect affordability credits. > > These are of course things that are very likely to be revised You can see the official explanation here: http://waysandmeans.house.gov/media/pdf/111/affordability.pdf > > Steve -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Steve Pope on August 13, 2009, 3:56 pm Please log in for more thread options [ Affordability credits ] >>>> Does anyone have more information on this subject, or know where >>>> to obtain it? >You can see the official explanation here: >http://waysandmeans.house.gov/media/pdf/111/affordability.pdf Thanks. It is interesting that this summary flatly states you do not get the credits if your income is below 133% of poverty level. This could create a doughnut hole of people who fail to meet some asset test for Medicaid, yet have too little income to get the affordability credits. Steve -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Education Credits January 27, 2008, 3:26 pm Energy Credits October 6, 2008, 11:04 am Estimated tax and credits question February 5, 2007, 8:22 pm Energy Credits for 2006? 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