Will I Receive Tax Credits for (ACA) Health Insurance?

In this Whiteboard Fireside Chat, Kevin Lao discusses the critical aspects of healthcare coverage for individuals planning to retire before the age of 65, particularly focusing on the Affordable Care Act (ACA) premium tax credits.

He explains how to navigate the complexities of modified adjusted gross income and the eligibility criteria for tax credits, emphasizing the importance of strategic tax planning to maximize benefits during the retirement transition period.

takeaways
-If you're retiring before 65, healthcare coverage is a concern.
-Premium tax credits can significantly reduce healthcare costs.
-Keeping your modified adjusted gross income in check is crucial.
-Eligibility for ACA credits depends on income and tax filing status.
-The ACA premium tax credits are subject to legislative changes.
-Understanding the federal poverty line is essential for tax credits.
-Calculating your expected contribution amount is key to maximizing benefits.
-Tax planning should consider long-term implications, not just immediate savings.
-Don't sacrifice long-term financial strategies for short-term tax credits.
-Smart tax planning can help keep healthcare costs low during retirement.

Chapters
00:00
One of the top concerns for “Early Retirees” is how to pay for quality healthcare!

1:27
Who is eligible for Affordable Care Act Premium Tax Credits?

4:40
How are the Premium Tax Credits calculated for the Affordable Care Act?

7:20
How is Modified Adjusted Gross Income Calculated When Determining ACA Premium Tax Credits

9:20
What is the Federal Poverty Line for ACA Premium Tax Credits?

10:08
Example for ACA Premium Tax Credits

14:10
Further look behind how the premium tax credit was actually calculated on the ACA website

16:21
When do I completely phase out of the ACA Premium Tax Credit under the current law?

18:48
How to keep your Modified Adjusted Gross Income Low for Premium Tax Credits

21:20
Final Thoughts on ACA Premium Tax Credits