Marketplace Insurance

[Lion EA]

What "income" number is the Marketplace looking for? Total Income? AGI? Taxable Income?

I have a client with a Schedule C where we have some options re depreciation and itemized deductions/standard and IRA contributions and.... Her insurance broker told her to aim for a certain "income," but cannot specify which. She's about my only client with Marketplace insurance.

[Tax Prep by Deb]

I'm replying off the top of my head but I believe if I remember correctly it is AGI then certain non taxable income added such as the non taxable portion of social security.

I work closely with an insurance agent and he would tell me what income level would be needed.  Don't forget too that if you need to reduce the income a little a contribution to an IRA would work as well as contributions to an IRA if the policy is a high deductible plan.

[Lion EA]

From the forms in the 2018 return, MAGI does start the calculation for the PTC. I hope that's what she needs to report to the Marketplace, but I gave her Total Income, also, so she can guesstimate her 2019 income. (She's a nurse doing consulting projects.) In this client's case, she doesn't want to risk dipping below the 100%/ending up on Medicaid. (2018 was 133% as is, but I need to proofread.) And, she does have an insurance guy, so I wanted to give her the 2018 numbers he'd need to advise her for 2019. The IRA contribution is a good reminder. And, an HSA if a HDHP. Do the MEC choices on the Marketplace include HDHPs? This return has both the iterations for SEHI and QBID calculations for her SE. I no longer have any easy returns to ease me into tax season! Thank you, Deb.

[Tax Prep by Deb]

Yes the market place does have HDHPs.  I currently have one.  I know it is so tricky.  My insurance guy is always calling me for info, and then when I start working on it from my end, I call him.  We have a wonderful working relationship.  He deals a lot with Covered California and it is a constant thorn in his side, but to give him credit where credit is due, every client I send to him and they allow him to get their insurance is always dead on when it comes to the end of the year calculations.  He is so good at what he does that I almost beg my clients to go to him and never try to get insurance on their own.  Those that choose to do it themselves are the ones that have mega troubles at the end of the year.