Quote:
Originally Posted by anothersteve
Yes I retired early and won't be collecting SS until Feb. My income for 2018, because of retireing early was only 48,000. My income for 2019 will be substantially less. So how does that fair?
Thanks for the post. That's the info I was looking for.
Steve
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Like I stated you need to go to
Get 2018 health coverage. Health Insurance Marketplace | HealthCare.gov and play around with the subsidy calculator. However 2019 enrollment is not available yet. I played around using a 2018 account. Here is the results for a single not married taxpayer with various incomes:
$48000 - subsidy = $6691/yr
$13000 - subsidy = 11318/yr
$12000 - no subsidy because income is so low you qualify for Medicaid
As you can see it is very beneficial to plan ahead in this tax year to maximize next year's subsidy. Example if you are planning to live on $48K next year pull out $35K this year and pay the taxes on it 2018 and project an income of $13k for next year. That could have a potential of getting you extra $4627 in subsidy. Likewise if you have an income of $49K you get no subsidy due to your projected income being too high and simply pulling out $1K this year gets you a $6691 subsidy.
This is not a case where common sense prevails. If you have trouble doing this alone I would go to an independent financial planner. If he/she doesn't know about this right off the top of their head walk away immediately and find another.