- Posted October 6, 2013 by
This iReport is part of an assignment:
Obamacare: Your story
Tax Credit Subsidy Has Options
On Friday I had reported "Subsidy Tax Credit Not Instant Deduction from Premium". Today I learned that this was not correct and information was not available that is now known.
There are three options for the tax credit subsidy for use by people who are purchasing health insurance planson the Marketplace Exchange found at HealthCare.gov. Those three options allow for:
1. Use on a monthly basis of the entire subsidy
2. Partial use of the subsidy or
3. To decline the subsidy until Tax Day.
I was not able to learn this, however, until my life partner Iohn and I were able to navigate a little farther down the line as we have attempted since last Tuesday to register, apply and compare the plans being offered in the Cornfield.
While today we are closer and learned Iohn is eligible for a $242 per month subsidy, we still cannot get to the plans and options to know what is best for Iohn or what the cost will be and if it is affordable.
The page to display the plans could not be found. More on that in a separate report.
Here are the screenshots with information on the tax credit subsidy.
The first image explains how you may choose how much of the tax credit to apply to your monthly healh insurance premium.
As evident in the second image, you can actually apply all of your tax credit subsidy to your monthly premiun to lower what you pay out each month. Most likely there will not be any tax credit left on Tax Day. There is the possibility you may have to refund part of the subsidy used.
Do a partial subsidy and you may get more back on Tax Day or could have to pay back Uncle Sam as well. The third option would have the tax credit deducted from you tax liability which could be a nice refund on Tax Day.
The third image re-emphasizes that using all of the tax credit subsidy each month will result in nothing being due back as a refund on Tax Day.
Remember if your circumstances change, such as a raise in pay, you may even owe the government re-imbursement.
This information, however, has not been effectively transmitted to the public.
While many keep talking, as have I, about how Republicans have not been good with messaging, the Administration of President Barack Obama has not been so clear and done so well in messaging about the Affordable Care Act, the tax credit subsidy and the Marketplace Exchanges as well.
Perhaps part of this is due that so many of the rules and regulations are still being written. Perhaps part of this is because as former Speaker of the House Nancy Pelosi quipped, "We have to pass it so we can read what's in it".
Aparently due to the size of the law, we are still having trouble knowing what's in it since it's such a hard read. It's worse than muddling through "War and Peace".
From the Cornfield, today we know more than we did Friday.
But why is this not being known front and center?
Why not put this out in big, bold letters?
Why are people having to wait to know the ins and outs?
This law and forethought to the implementation continues to be worse than a roller coaster threatening to fly off the rails.