I’m a bit younger than you, but I earned a good bit more last year than I had anticipated when I did my W-4s. Needless to say, I wrote a hefty check to the IRS, and greatly increased my withholding to avoid penalties for this year.
But, then again, I can’t afford a sailboat, either.
As I said earlier I am 66 and still working. I pay my Medicare tax as part of my pay deductions. It comes to around $2,500 per year. I signed up for Medicare Part A. It’s without charge to me. I signed up for Medicare Part B and surprise I am a high income earner. Part B is going to cost me an additional $1,200 per year. Paid into Medicare all of my working life, still paying into it and now they want to charge me more for enrolling into the program.
I’m self-employed, so my wife and I pay $1745/month, almost $21,000/year, for an “affordable” ObamaCare plan.
So, for $21,000/year, it must be a great plan, right? No. It has a $13,000 deductible and all services must be performed by an in-network provider in a very small network. No vision, hearing, or dental coverage. But 50-something wife and I do get free birth control pills.
Thanks, Barack, and thank you, too, Nancy.
Being self-employed, I have quite a bit of control on the timing of income, but I essentially quit taking on work at the end of the year. I figure that a $1 over the 400% threshold has a marginal income tax rate of about 800,000%. I just can’t afford to work.
By limiting income and taking full advantage of adjustments to income such as health savings account and retirement contributions, I manage to get the subsidy. Essentially, ObamaCare mandates that I pay my income taxes to an insurance company rather than the IRS.
The 400% is based on modified adjusted gross income. ObamaCare victims should all check to see whether they can increase any of the adjustments to gross income such as retirement or HSA contributions before year end.