In Law Tax and Obamacare Questions

[northusa44 4]

Before filing taxes for my green card-holder in-law, I just want to double-check that we are OK with what happened last year in terms of Obamacare.

 

My in-law was on Obamacare (with subsidies) for a few months in 2024. At the time, they did not have work, so I believe we estimated their income on the low end (I honestly can't remember if we estimated 0 or a few thousand; whatever it was, we made an honest attempt). Then, in early fall, they were hired full-time. They wound up coming off of Obamacare and onto their employer's plan for the last few months of the year. By the end of the year, they had made more than the dependent maximum (something like $5200 for 2025; i.e. even if we wanted to we cannot claim them as a dependent for tax purposes) but less than the Obamacare minimum of ~$15,000. Without getting into specifics, let's just say they made~10,000 for 2024. 

 

We live in a state that has not expanded Medicaid. My understanding is that we are thus OK in terms of taxes because Obamacare is available even if income is under the Obamacare minimum when Medicaid is not available (with the exception that we might be asked to refund the difference between the subsidy we received vs. the estimated income we gave), but I want to see if anyone knows more about this and can either confirm or give more info (or tell me that I am wrong about the Obamacare minimum not applying when Medicaid is not available fit). I.e. if you think that we need to call healthcare.gov to report all of this, do let me know/state why.

 

Secondarily, and with all the stuff going on with immigrants in the US, do also write if there have been any new administration changes to immigrants and Obamacare that would be relevant to this. Thank you!

 

 

[northusa44 4]

*I think the critical thing here is whether I am right about ACA subsidies being available to immigrants who are under the usual minimum (~15,000) in income in states that have not expanded Medicaid. I've seen references in several places to this, but I have not been able to find this put explicitly. What I am seeing is that Obamacare is basically available to any immigrant who is not eligible for Medicaid (and therefore, in my state that has not expanded Medicaid, this would include those earning under ~15,000).

 

If anyone has more info on this, I would appreciate it!

[Tesco 102]

You must be lawfully present for Obama Care. As for subsidies, the household income must be over 100% of the poverty level. If you can’t prove this, there will

be reduced or no APTC. We were quoted $1,900 a month without credit. Make over 100% and your premiums will be very low/none if you choice a silver plan.

[northusa44 4]

14 hours ago, Tesco said:

You must be lawfully present for Obama Care. As for subsidies, the household income must be over 100% of the poverty level. If you can’t prove this, there will

be reduced or no APTC. We were quoted $1,900 a month without credit. Make over 100% and your premiums will be very low/none if you choice a silver plan.

Thanks! But I think, though I'm not certain, that what you wrote is wrong in our case. I am aware of the 100% poverty level rule. But read through this thread, in which many have gotten Obamacare for 65+seniors with 0 or little income.  

I've been reading elsewhere online, and from what I can tell, and as with the above cases for 65+, if one is ineligible for Medicaid, they are eligible for Obamacare (there is a long debate in that thread about whether one can choose not to be a dependent if earning under the dependent maximum; this debate does not apply to my in-law since they are in the coverage gap between that dependent maximum and 100% FPL.

 

We called Obamacare and faithfully reported expected income, etc. The reported income was no more than an expected $3000 for the year. We also told them our state. And Obamacare then gave us a near 0 dollar premium quote.

 

There are two possibilities. Either that Obamacare rep was wrong, or the law actually allows Obamacare for those under 100% FPL if they are ineligible for Medicaid (which my in-law is, since we are in a state that has expanded). 

 

Again, would love more input (and Tesco, do write back if you've got more info--like I said, I'm not 100% sure on this, thus the query.)

Edited April 8 by northusa44

[northusa44 4]

Here's an article that gets at the heart of what I think is right here. Scroll down and read the section "What are the immigration-related eligibility requirements for premium tax credits and cost sharing reductions in the ACA marketplaces? "

Health Insurance Affordability Programs’ Eligibility Based on Immigration Status - Beyond the Basics

 

Am I correct that this article is basically saying that any green card holder under 100% FPL and who is not yet eligible for Medicaid is qualified for the premium tax credits? This is what the Obamacare representative who gave my in-law the tax credits seems to have been going off of.

 

Again, further guidance from those who understand this more than I do would be appreciated. I am still unsure if we need to pay a penalty for the tax credits or not (again, my in-law's income is under 100% of the FPL and they are not eligible for Medicaid based both on our state and the fact they have not fulfilled the five year waiting period). My understanding is that they should not be paying a penalty, but I am nervous about filing without the penalty without more guidance.