# Please help! Adjusted gross income and ACA



## TuxedoLeo (Apr 16, 2018)

I'm in a huge pickle. I have a wife and a stepdaughter. I'm the only one who works, as my wife is going to school full time. I qualified for a aca premium tax credit at the beginning of the year because I put in that I would make about 20,100 dollars. I believe you have to make over 20,000 in a family of three to qualify for a tax credit, so honestly I thought I was low balling that, and that I would make much more when all is said and done. I drive with lyft. I average about 700 bucks take home pay a week. I get the 150 bonus each week which is great cause I'm not burning miles to get it. I'm on track to make over 30,000 dollars take home pay so I thought I was in the clear when it comes to the ACA
But just last night my whole plan came crashing down. I found out that if your self employed, the ACA judges you on not "take home pay" but adjusted gross income. Well I drive almost a 1000 miles a week, so with the standard mileage deduction that's basically 25,000 in deduction. Which means my adjusted gross income is only 5000 bucks or something, which means I don't qualify for the ACA. So my question is has anyone out there dealt with this? Come next year when the ACA figures out that I didn't make "20,000" in adjusted gross income will I receive some huge penalty? Also I'm in between a rock and hard place because I don't think I qualify for medicade because my savings is too high. So basically here I am, with a wife and child, and us trying to get pregnant late this year to have a baby next year, and I'm staring at the possibility of being locked out of insurance, because although I'll be pulling in over 30000 a year, since the mileage deduction is so high, the government will put me in the poverty level making 5 grand a year, but medicade will lock me out because I got a semi large chunk of savings from a sale of a family business some years back. I don't know if anyone has been in a similar situation, but any advice would seriously help! Am I doing everything right? The mileage deduction almost seems to high? I mean my car itself is only worth 20000 brand new, and I'm able to dedicate 26,0000 for mileage? That seems extreme. I know for most people the mileage deduction is amazing. I'm one of those rare individuals that it really hurts cause it may lock me and my family out of health insurance. Seriously, guys and gals ANY help or advice in this situation will help. I've called healthcare.gov three times, and they literally know nothing. I straight up asked the guy, if somehow I don't make the 20,000 like I said I was gonna make, and I fall in the category of not making enough to qualify for the ACA what will happen? Will I have to pay the subsidy back? Will I receive some huge penalty? He said, we'll I'm not sure sure, cause I'm not a insurance agent.................... o.o


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## UberTaxPro (Oct 3, 2014)

TuxedoLeo said:


> I'm in a huge pickle. I have a wife and a stepdaughter. I'm the only one who works, as my wife is going to school full time. I qualified for a aca premium tax credit at the beginning of the year because I put in that I would make about 20,100 dollars. I believe you have to make over 20,000 in a family of three to qualify for a tax credit, so honestly I thought I was low balling that, and that I would make much more when all is said and done. I drive with lyft. I average about 700 bucks take home pay a week. I get the 150 bonus each week which is great cause I'm not burning miles to get it. I'm on track to make over 30,000 dollars take home pay so I thought I was in the clear when it comes to the ACA
> But just last night my whole plan came crashing down. I found out that if your self employed, the ACA judges you on not "take home pay" but adjusted gross income. Well I drive almost a 1000 miles a week, so with the standard mileage deduction that's basically 25,000 in deduction. Which means my adjusted gross income is only 5000 bucks or something, which means I don't qualify for the ACA. So my question is has anyone out there dealt with this? Come next year when the ACA figures out that I didn't make "20,000" in adjusted gross income will I receive some huge penalty? Also I'm in between a rock and hard place because I don't think I qualify for medicade because my savings is too high. So basically here I am, with a wife and child, and us trying to get pregnant late this year to have a baby next year, and I'm staring at the possibility of being locked out of insurance, because although I'll be pulling in over 30000 a year, since the mileage deduction is so high, the government will put me in the poverty level making 5 grand a year, but medicade will lock me out because I got a semi large chunk of savings from a sale of a family business some years back. I don't know if anyone has been in a similar situation, but any advice would seriously help! Am I doing everything right? The mileage deduction almost seems to high? I mean my car itself is only worth 20000 brand new, and I'm able to dedicate 26,0000 for mileage? That seems extreme. I know for most people the mileage deduction is amazing. I'm one of those rare individuals that it really hurts cause it may lock me and my family out of health insurance. Seriously, guys and gals ANY help or advice in this situation will help. I've called healthcare.gov three times, and they literally know nothing. I straight up asked the guy, if somehow I don't make the 20,000 like I said I was gonna make, and I fall in the category of not making enough to qualify for the ACA what will happen? Will I have to pay the subsidy back? Will I receive some huge penalty? He said, we'll I'm not sure sure, cause I'm not a insurance agent.................... o.o


You can qualify for medicaid. Medicaid does not look at an applicant's savings and other financial resources unless the person is 65 or older or disabled. That also changed with Obamacare.
http://www.syracuse.com/news/index...._medicaid_if_i_have_60000_in_the_bank_an.html


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## TuxedoLeo (Apr 16, 2018)

Unfortunately I live in Fl. We didn't expand Medicade. Which means medicade here in Fl still checks assests. You can't have more than 2000 bucks. Im not replubican or democrat, but I'm strongly considering voting Democrat for governor this November cause there the side trying to expand medicade to all states.


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## UberTaxPro (Oct 3, 2014)

TuxedoLeo said:


> Unfortunately I live in Fl. We didn't expand Medicade. Which means medicade here in Fl still checks assests. You can't have more than 2000 bucks. Im not replubican or democrat, but I'm strongly considering voting Democrat for governor this November cause there the side trying to expand medicade to all states.


Looks like you've only got a couple choices: 1. Move, 2. You and/or your wife could get a part time w2 job to get your income up to the required 20,160.
Some people in your situation have considered not reporting all their schedule c expenses. I wouldn't suggest that as the Tax Court has ruled that you must declare all your expenses when tax credits are involved.


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## Stevie The magic Unicorn (Apr 3, 2018)

Well...

There's another option that the other guys just don't see.

Don't forget your cash revenue!

Sure your not missing $15,000 in cash revenue that isn't reported elsewhere?

Your driving a for-hire vehicle are you saying that no one ever pays cash? Or tips in cash?

Do you know how hard it would be for the IRS to prove that you didn't get paid another $15,000 in cash?

Where did it all go?

Well it went to dinners out, groceries, clothing, electronics... the heck if you know where it went..

$15,000 is only $288 a week or $41 a day.

I'm not telling you to lie, i'm telling you to not forget cash revenue... that was never paid through a payment processor and never made it onto 1099s.


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## Rat (Mar 6, 2016)

TuxedoLeo said:


> I'm in a huge pickle. I have a wife and a stepdaughter. I'm the only one who works, as my wife is going to school full time. I qualified for a aca premium tax credit at the beginning of the year because I put in that I would make about 20,100 dollars. I believe you have to make over 20,000 in a family of three to qualify for a tax credit, so honestly I thought I was low balling that, and that I would make much more when all is said and done. I drive with lyft. I average about 700 bucks take home pay a week. I get the 150 bonus each week which is great cause I'm not burning miles to get it. I'm on track to make over 30,000 dollars take home pay so I thought I was in the clear when it comes to the ACA
> But just last night my whole plan came crashing down. I found out that if your self employed, the ACA judges you on not "take home pay" but adjusted gross income. Well I drive almost a 1000 miles a week, so with the standard mileage deduction that's basically 25,000 in deduction. Which means my adjusted gross income is only 5000 bucks or something, which means I don't qualify for the ACA. So my question is has anyone out there dealt with this? Come next year when the ACA figures out that I didn't make "20,000" in adjusted gross income will I receive some huge penalty? Also I'm in between a rock and hard place because I don't think I qualify for medicade because my savings is too high. So basically here I am, with a wife and child, and us trying to get pregnant late this year to have a baby next year, and I'm staring at the possibility of being locked out of insurance, because although I'll be pulling in over 30000 a year, since the mileage deduction is so high, the government will put me in the poverty level making 5 grand a year, but medicade will lock me out because I got a semi large chunk of savings from a sale of a family business some years back. I don't know if anyone has been in a similar situation, but any advice would seriously help! Am I doing everything right? The mileage deduction almost seems to high? I mean my car itself is only worth 20000 brand new, and I'm able to dedicate 26,0000 for mileage? That seems extreme. I know for most people the mileage deduction is amazing. I'm one of those rare individuals that it really hurts cause it may lock me and my family out of health insurance. Seriously, guys and gals ANY help or advice in this situation will help. I've called healthcare.gov three times, and they literally know nothing. I straight up asked the guy, if somehow I don't make the 20,000 like I said I was gonna make, and I fall in the category of not making enough to qualify for the ACA what will happen? Will I have to pay the subsidy back? Will I receive some huge penalty? He said, we'll I'm not sure sure, cause I'm not a insurance agent.................... o.o


You aren't required to use all your deductions. Problem solved



TuxedoLeo said:


> Unfortunately I live in Fl. We didn't expand Medicade. Which means medicade here in Fl still checks assests. You can't have more than 2000 bucks. Im not replubican or democrat, but I'm strongly considering voting Democrat for governor this November cause there the side trying to expand medicade to all states.


They talked about doing that 50 years. Haven't done it yet.


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## beezlewaxin (Feb 10, 2015)

How much was your ACA subsidy?


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## Rat (Mar 6, 2016)

UberTaxPro said:


> You can qualify for medicaid. Medicaid does not look at an applicant's savings and other financial resources unless the person is 65 or older or disabled. That also changed with Obamacare.
> http://www.syracuse.com/news/index...._medicaid_if_i_have_60000_in_the_bank_an.html


Yes they do


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## UberTaxPro (Oct 3, 2014)

Rat said:


> You aren't required to use all your deductions. Problem solved
> 
> They talked about doing that 50 years. Haven't done it yet.


You are required to take all your deductions when it concerns the aca. There's been tax court cases about this issue.



Rat said:


> Yes they do


Yes your right for 18 states, but for 33 states they don't have lack of asset requirements. Unfortunately for the OP he lives in one of the 18.


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## henrygates (Mar 29, 2018)

Don't deduct anything. You'll pay more in taxes but you'll meet the threshold. You really need to talk to a CPA.

On a personal note, if you can wait on the baby. Having a baby with ACA is a costly venture. Healthcare in this country is broken. From personal experience.

I'm doing Uber partly to pay medical bills from having kiddo #2.


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## Oscar Levant (Aug 15, 2014)

TuxedoLeo said:


> I'm in a huge pickle. I have a wife and a stepdaughter. I'm the only one who works, as my wife is going to school full time. I qualified for a aca premium tax credit at the beginning of the year because I put in that I would make about 20,100 dollars. I believe you have to make over 20,000 in a family of three to qualify for a tax credit, so honestly I thought I was low balling that, and that I would make much more when all is said and done. I drive with lyft. I average about 700 bucks take home pay a week. I get the 150 bonus each week which is great cause I'm not burning miles to get it. I'm on track to make over 30,000 dollars take home pay so I thought I was in the clear when it comes to the ACA
> But just last night my whole plan came crashing down. I found out that if your self employed, the ACA judges you on not "take home pay" but adjusted gross income. Well I drive almost a 1000 miles a week, so with the standard mileage deduction that's basically 25,000 in deduction. Which means my adjusted gross income is only 5000 bucks or something, which means I don't qualify for the ACA. So my question is has anyone out there dealt with this? Come next year when the ACA figures out that I didn't make "20,000" in adjusted gross income will I receive some huge penalty? Also I'm in between a rock and hard place because I don't think I qualify for medicade because my savings is too high. So basically here I am, with a wife and child, and us trying to get pregnant late this year to have a baby next year, and I'm staring at the possibility of being locked out of insurance, because although I'll be pulling in over 30000 a year, since the mileage deduction is so high, the government will put me in the poverty level making 5 grand a year, but medicade will lock me out because I got a semi large chunk of savings from a sale of a family business some years back. I don't know if anyone has been in a similar situation, but any advice would seriously help! Am I doing everything right? The mileage deduction almost seems to high? I mean my car itself is only worth 20000 brand new, and I'm able to dedicate 26,0000 for mileage? That seems extreme. I know for most people the mileage deduction is amazing. I'm one of those rare individuals that it really hurts cause it may lock me and my family out of health insurance. Seriously, guys and gals ANY help or advice in this situation will help. I've called healthcare.gov three times, and they literally know nothing. I straight up asked the guy, if somehow I don't make the 20,000 like I said I was gonna make, and I fall in the category of not making enough to qualify for the ACA what will happen? Will I have to pay the subsidy back? Will I receive some huge penalty? He said, we'll I'm not sure sure, cause I'm not a insurance agent.................... o.o


Get a tax accountant, you really need one, you're situation is a little deeper given the biz sale thing.

Yes, the mileage deduction is for real and is very generous, I love the mileage deduction.

just forgo the deduction if that is what you need to do to get ACA. They will only fault you for taking deductions that you shouldn't be taking, _not for *not taking *deductions you should be taking. 
_



TuxedoLeo said:


> Unfortunately I live in Fl. We didn't expand Medicade. Which means medicade here in Fl still checks assests. You can't have more than 2000 bucks. Im not replubican or democrat, but I'm strongly considering voting Democrat for governor this November cause there the side trying to expand medicade to all states.


For some, their only hope of medical coverage is to vote for democrats, might even be life or death for some.

Libertarians would have you just call up a bunch a charities, and pray one will help you.


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## bsliv (Mar 1, 2016)

Oscar Levant said:


> Libertarians would have you just call up a bunch a charities, and pray one will help you.


In a libertarian society jobs would be more plentiful, medical costs would be a small fraction of today's costs, and income taxes would be near zero. This issue wouldn't exist. A society that is over regulated, such as ours, these issues will be present.


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## Stevie The magic Unicorn (Apr 3, 2018)

bsliv said:


> In a libertarian society jobs would be more plentiful, medical costs would be a small fraction of today's costs, and income taxes would be near zero. This issue wouldn't exist. A society that is over regulated, such as ours, these issues will be present.


Unfortunately, libertarian ideals are what created uber in the first place.

In a libertarian society there would be the rich and those working 100 hours a week to live in squalor. Because people would take jobs because they are desperate to feed their families.

Every political leaning has a dark side.. The Dark side of Libertarian-ism is slavery, defacto slavery and child labor.

The dark side of conservatism is ... well the Dark ages, the witch hunts, the Spanish inquisition...

The dark side of communism : see Joseph Stalin.

The dark side of liberalism is free love and the aids epidemic.

You need a balance of these different forces or things go sideways. Liberals telling you that you can't have 5 year olds working on running machinery and losing their hands.... there's a new child born every day...


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## bsliv (Mar 1, 2016)

Stevie The magic Unicorn said:


> In a libertarian society there would be the rich and those working 100 hours a week to live in squalor. Because people would take jobs because they are desperate to feed their families.


Incorrect. In a libertarian society there would be no regulations to bar entry to an industry. That guarantees competition. Competition prevents one business from dominating an industry. For example, to compete with Uber in Nevada, one needs a half million dollars for the license application. To be a barber requires twice the training as to become a cop. Other states, counties and/or cities have similar protectionist laws.

With open markets and competition, a worker is free to seek another job or start their own business. Unemployment would be near zero. Tons of entry level positions would be created freeing up more advanced jobs for more advanced workers. The more available jobs there are, the more businesses will compete for the labor. They compete for labor by raising wages and/or benefits.

Some people complain about 20% interest on a credit card. Some of those same people think 40% of my wage is fair to pay in taxes.



Stevie The magic Unicorn said:


> Unfortunately, libertarian ideals are what created uber in the first place.


And it has been a huge benefit to million of riders and a small benefit to millions of drivers. The only losers have been cab company owners. Bring a product to market that has demand and get rich. Or go through the red tape and hope to break even. Hmmmm.


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## Stevie The magic Unicorn (Apr 3, 2018)

bsliv said:


> Incorrect. In a libertarian society there would be no regulations to bar entry to an industry. That guarantees competition. Competition prevents one business from dominating an industry. For example, to compete with Uber in Nevada, one needs a half million dollars for the license application. To be a barber requires twice the training as to become a cop. Other states, counties and/or cities have similar protectionist laws.
> 
> With open markets and competition, a worker is free to seek another job or start their own business. Unemployment would be near zero. Tons of entry level positions would be created freeing up more advanced jobs for more advanced workers. The more available jobs there are, the more businesses will compete for the labor. They compete for labor by raising wages and/or benefits.


You're kinda wrong there...

A complete lack of workers and regulation instead leads to heinous and agregious things like child labor. It happened in China in the 80s.. It happened in the US in the 1,800s..

History repeats..

You do realize that uber can cut driver pay down to a fraction of what it is now...

If they paid what they used to in Orlando i would probably be saying the same thing you are.

This is a factory without regulation,









Can you tell a difference?










I saw stuff like this all the time when i was overseas. But... the factory kids arn't being sold *in the worst way*

This is libertarianism running rampant.

This is factual history, not crap i'm making up on the spot.

It was a lack of rules that created this.

Freedom and anarchy are two sides of the same coin. Just like Oppression and Law are two sides of the same coin.

I'm personally all for oppressing the rights of people who just want to drive with a BAC of .35

Regulations have their place. But there is a fine balance that must be kept, i will admit that.

I'm not saying that the taxi industry wasn't over regulated, but a lot of the regulations have a purpose.

Killing the regulations has proven to not only not increase wages but also increase child labor...

Uber is pushing labor laws backwards... What's Walmart gonna do when they can't staff their stores?

What happens when Walmart Lobbies for allowing children as young as 14 to work in retail?

But that won't happen?

Just like a 50 billion dollar company can't get away with paying it's workers less than minimum wage in some states?


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## bsliv (Mar 1, 2016)

Stevie The magic Unicorn said:


> leads to heinous and agregious things like child labor


When I hear, "Its for the children," I cringe. Its a cliche that acts as a plea for pity and used as an appeal to emotion.

Who is in charge of children, parents or the state? Why do farmers typically have large families? Is it better for a teen to be a mall rat, gang member or be productive? Having said that, children do not have fully developed brains and shouldn't be bestowed all the rights of an adult.



Stevie The magic Unicorn said:


> You do realize that uber can cut driver pay down to a fraction of what it is now


Yep. I, and probably Uber, wonder at what rate drivers will finally stop. I wouldn't think anything less of Uber if they reduced rates to $0.01 per mile. I might form a negative opinion of someone who drives at that rate.



Stevie The magic Unicorn said:


> Freedom and anarchy


Most libertarians aren't calling for anarchy. Most libertarians concede governments are a necessary evil. It is necessary in order to protect human and property rights and to provide for a common defense. EXTRA LARGE PERIOD.



Stevie The magic Unicorn said:


> Oppression and Law


If there is a choice between too much freedom and too much oppression, I'll choose freedom every time.



Stevie The magic Unicorn said:


> lot of the regulations have a purpose


The main purpose of some regulation is to gain votes (or lose less votes). Want to get casino workers to vote for you? Support any regulation to promote their cause du jour. Want the senior vote? Support social security.



Stevie The magic Unicorn said:


> Uber is pushing labor laws backwards


Uber respects and obeys the principles of economics. Drivers are subject to the same principles but many ignore them. If there is a willing buyer and a willing seller, and the transaction is not harming a 3rd party's rights, the transaction should be allowed. Caveat emptor. Cave venditor.



Stevie The magic Unicorn said:


> What's Walmart gonna do when they can't staff their stores?


Compete for the labor by increasing wages and/or benefits - make the job more attractive.



Stevie The magic Unicorn said:


> What happens when Walmart Lobbies for allowing children as young as 14 to work in retail?


See my first sentence in this post. I was 14 or 15 when I got a job at a hardware store. I was paid $0.50 per hour. I was glad to get the money. In retrospect, the education and discipline it provided me was worth much more than the money.

In the United States, the individual should be regarded superior to the state. In many other countries, the individual is to serve the state. Regulations increase the size, scope, and cost of governments. Someone has to pay for the legislators, administrators, prosecutors, and jailers. Nevada has not banned casino gambling, sports gambling, prostitution, marijuana (finally), or scary looking firearms. Nevada requires personal responsibility in relation to these issues. Las Vegas was one of the fastest growing cities in the country for a decade or two. Coincidence? I think not.


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## Oscar Levant (Aug 15, 2014)

bsliv said:


> In a libertarian society jobs would be more plentiful, medical costs would be a small fraction of today's costs, and income taxes would be near zero. This issue wouldn't exist. A society that is over regulated, such as ours, these issues will be present.


Nice fantasy.


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## Oscar Levant (Aug 15, 2014)

Stevie The magic Unicorn said:


> Unfortunately, libertarian ideals are what created uber in the first place.
> 
> In a libertarian society there would be the rich and those working 100 hours a week to live in squalor. Because people would take jobs because they are desperate to feed their families.
> 
> ...


I favor a balancing act of "Capitalism for wants (most goods and services ), Socialism for needs (police, fire, defense, medical )"


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