If your health insurance is subsidized under Obamacare, READ THIS!
Under Section 2002 and Regulations, if your earnings go over the Obamacare limit in any year, BY EVEN ONE DOLLAR, you will have to pay back the entire amount of the subsidy. Not just the subsidy that was paid after you went over the limit, but the amount of the subsidy for the ENTIRE year.
Here’s an example. Let’s say that your income is $50,000 and your income limit is $60,000 in order to get a subsidy. And, let’s say that your subsidy is $10,000 per year. Then, in September, things get busy at work and you start getting tons of overtime, right through Christmas. Great, you say. You can use the extra money.
Except, on December 29, your income goes to $60,001. You are then no longer eligible for a subsidy. YOU OWE OBAMACARE $10,000 and the IRS will be collecting.
What can you do? Nothing – it’s too late. You’ll have to pay.
What can you do this year? Be alert for any increase in your income. Monitor it as the year goes by. If it begins to look like you might be approaching your income limit, tell your employer that you can’t earn that much more money. You’re going to have to turn down work.
Increases in income now take on new risk. Look at any promotion, raise, overtime, bonus, annual increment, longevity payment, or second job in this new light. If the extra money will take you above the limit, will it be worth it? You may have to turn down the money.
Is there any question that Obamacare discourages work? Discourages ambition? Discourages success? This is another example.
For over a year, I have written about Obamacare – the good and the bad. It is now clear that this law can’t be fixed. Obamacare is so full of landmines that are so cross-wired with other laws and everyday values, that it must be replaced. It will take a different law with time to root out all the buried bombs, but it must be done. Otherwise, we’ll be stepping on them for the next 20 years…and blowing ourselves up.