Cut Your Obamacare Cost

Thanks to Obamacare (the Affordable Health Care Act), it is now more important than ever that you cut your Adjusted Gross Income (AGI, 1040 page 1 total) on your tax return.

You can substantially cut your Obamacare cost if you cut your AGI. That’s easy! I have been specializing in this for more than 30 years. There also is still time to do this by amending your 2012 tax return or substantially changing the way your report on your 2013 tax return.

Until now, I did it for many reasons besides wanting to cut your Obamacare cost. Did your CPA ever tell you that cutting your AGI was always critical to?

  • Make Internal Revenue audits less likely
  • Increase your total deductions
  • Cut your Social Security and Medicare tax
  • Increase your Earned Income and other credits
  • Let you take bigger Net Operating Loss deductions
  • Minimize the Alternative Minimum Tax and more

If not, I must most respectfully say that your CPA may not have done his job. I also must most respectfully say that he may have been even more negligent if he did not tell you that it is now even more critical to cut your AGI because of Obamacare:

  • Your AGI affects if you qualify for Obamacare subsidies (not your taxable income or property)
  • You may be able to get Obamacare policies in low-cost states
  • Individual income determines your maximum insurance cost:
    • Up to $11,490 – 2%
    • $11,491 – $22,980 – 6%+
    • $22,981 – $34,470 – 8%
    • $34,471 – $45.960 – 9.5%
    • Over $45,960 – no limit
  • or Family income determines your maximum insurance cost:
    • Up to $23,550 – 2%
    • $23,551 – $47,100 – 6%+
    • $47,101 – $70,650 – 8%
    •  $70,651 – $94,200 – 9.5%
    • Over $94,200 – no limit
  • The government uses the second-cheapest “silver” plan cost in your area to determine your subsidy (not the cost of the plan selected). This makes lower priced plans cost proportionaltely less.
  • If your AGI is less than $11,490 for an individual or $23,550 for a family, you may be eligible for no-cost Medicaid

There is much more that can affect your Obamacare coverage (exemption) and cost. This means that how someone prepares your tax return often can make a big cut in your Obamacare cost and tax cost (refund).

It is now especially important to cut costs by shifting personal deductions to business tax returns, whether this means a corporation, S corporation, partnership, LLC or a 1040 Schedule C. The best way to do this depends on your income level, income sources and deductions. It also often requires several plans for optimum savings.

In doing this it helps to have a tax professional with extensive experience, who feels that every dollar you pay (or every dollar of refund that you do not get) is coming directly out of his own pocket. I often care far more about this optimization than my clients care. If you do not feel your CPA cares this way, then please click here to contact me.

That is why I will now provide a free 2012 tax return review. I also can help you save lots of money on bookkeeping, especially if you hate it. Many of my clients no longer do any bookkeeping at all, but pay less than they did when they struggled with QuickBooks. It definitely costs more to fix a QuickBooks mess than it does to do it right in the first place, but we now use automatic nightly updates and an exclusive automation program to update records as often as daily.

Your often updated records also can include copies of all your documents. You never have to send us bank statements or checks tubs for us to enter their information daily. However, you also cannot lose records if you scan or mail them weekly or monthly, before losing them.  You will even be able to find any record you want instantly, while still saving money and getting tax returns sooner. This turned some of my worst clients into some of my best. As one recently client put it, when shown only a small part of this, “Thank God!”

So again, so if you do not feel your CPA cares this way, then please click here to contact me.

For a plain-language explanation of some of this, see:

Obamacare and you:
How much does Obamacare cost?

 

About the Author ()

Fastest, easiest, accurate, low-cost QuickBooks! Intuit - QuickBooks CEO, "You're fantastic Mike! Absolutely fantastic!" Tax fighting CPA.

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