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.
Be careful with your calculations for this year - the all of the numbers have moved with the new tax law.
Plus you get to pay your own Social Security taxes.