ACA is priced upon age and zip code. Once premiums are calculated, then a MAGI equation will establish how much in Premium Tax Credit (PTC)is allowed. I have a gold plan as I have many broken parts that need more maintenance and live in a CA near-VHCOL area. I am also near Medicare age so the premiums are at their nearest high amount they will get.
My premiums are nearly $17K with the PTC amounts applied. I have had some clawed back the last two years but have eked out some PTC. My estimate for this year is around $3-$4K PTC before any clawback from next year’s tax reconciliation.
It is what it is. I itemize deductions, so I add the premium amounts with the rest of the OOP expenses. I took a hypothetical 62 and 58 year-old couple and ran it through CoveredCA. The mid-priced bronze HDHP plan produced $831 in PTC per month based upon the $167K produced from the portfolio. This is the only income I have taken into consideration in this case. If there were no PTC available, it would then ‘cost’ $9,972 in ‘lost’ PTC. I am not sure where your “extra $24k per year” figure is coming from. Did I miss something?
As a sizable portion of my income is from CA municipal income, I still have the same MAGI equation for the ACA premium but am able to get more deducted off of my federal tax return. How? Because the 7.5% itemization exclusion is AGI based, so the near $30K in municipal income does not count in the exclusion amount. This is how I effectively reclaim back some of my lost PTC.
My premiums are nearly $17K with the PTC amounts applied. I have had some clawed back the last two years but have eked out some PTC. My estimate for this year is around $3-$4K PTC before any clawback from next year’s tax reconciliation.
It is what it is. I itemize deductions, so I add the premium amounts with the rest of the OOP expenses. I took a hypothetical 62 and 58 year-old couple and ran it through CoveredCA. The mid-priced bronze HDHP plan produced $831 in PTC per month based upon the $167K produced from the portfolio. This is the only income I have taken into consideration in this case. If there were no PTC available, it would then ‘cost’ $9,972 in ‘lost’ PTC. I am not sure where your “extra $24k per year” figure is coming from. Did I miss something?
As a sizable portion of my income is from CA municipal income, I still have the same MAGI equation for the ACA premium but am able to get more deducted off of my federal tax return. How? Because the 7.5% itemization exclusion is AGI based, so the near $30K in municipal income does not count in the exclusion amount. This is how I effectively reclaim back some of my lost PTC.
Statistics: Posted by Hacksawdave — Sat Sep 27, 2025 3:20 pm — Replies 28 — Views 2681