Dreaded tax

Old Jun 24th 2019, 11:28 pm
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Default Dreaded tax

Don't know if anyone has experience but I will ask anyway. For the purposes of medical insurance, I'm being asked for my annual income for 2019. In order to qualify for a government plan I need a minimum of $12,200 per year. The Insurance guy couldn't answer if that sum is reduced proportionately as I entered the country May 4th. I asked if my U.K. earnings would/could be counted -if they were I would be double taxed which I don't believe is allowed or is it?
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Old Jun 25th 2019, 12:27 am
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Default Re: Dreaded tax

Originally Posted by isi16 View Post
Don't know if anyone has experience but I will ask anyway. For the purposes of medical insurance, I'm being asked for my annual income for 2019. In order to qualify for a government plan I need a minimum of $12,200 per year. The Insurance guy couldn't answer if that sum is reduced proportionately as I entered the country May 4th. I asked if my U.K. earnings would/could be counted -if they were I would be double taxed which I don't believe is allowed or is it?
If you're getting ACA insurance on the Exchange it'll all be adjusted when you file your tax return in early 2020.
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Old Jun 25th 2019, 1:00 am
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Default Re: Dreaded tax

Originally Posted by isi16 View Post
Don't know if anyone has experience but I will ask anyway. For the purposes of medical insurance, I'm being asked for my annual income for 2019. In order to qualify for a government plan I need a minimum of $12,200 per year. The Insurance guy couldn't answer if that sum is reduced proportionately as I entered the country May 4th. I asked if my U.K. earnings would/could be counted -if they were I would be double taxed which I don't believe is allowed or is it?
Any actual subsidy will be based on your Modified Annual Gross Income (MAGI) for 2019 as defined by the IRS. If your concern is that your 2019 income post May 4th will be too low for a subsidy, you could elect to be taxed as a full year resident alien as opposed to part year. That will mean the US "taxes" your income prior to being resident but you'll either get a credit against taxes for any foreign tax paid or use the foreign earned income exclusion to avoid double taxation.

Your other option would be Medicaid subject to the qualification requirements of the state you are living in and whether that's available to whatever category of visa you are here on. Not sure what state you moved to, but also be aware that in states that haven't expanded Medicaid, there is a bizarre situation where there is a gap in income level where you neither qualify for Medicaid nor are entitled to a subsidy.

Better apply soon - your special enrollment period ends 60 days after May 4th.

Last edited by Giantaxe; Jun 25th 2019 at 1:24 am.
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Old Jun 25th 2019, 3:41 am
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Default Re: Dreaded tax

Yes my time is running out and I am panicking. 😕.

I am in Wichita, Kansas, son is my sponsor.

I had a plan sorted or so I thought but when it came through to read over it was totally unsuitable so had to get back on the internet/phone. I have been informed I'm not eligible for Medicaid or Kancare as my pension from uk is too low. My application has been sent to a couple of agencies in Kansas because of my age (62) and I have disabilities (fibromyalgia and chronic pain). To see if I'm eligible through any of them for coverage.. I can work part time if I find a suitable admin post and would wish to do so but seemingly they won't take a projected income. Before I moved over I checked all this and was told by an agent that they would......it's sooooo difficult. Pretty much on my own dealing with it too as my son hasn't a clue, his cover is through work (and he can't add me as a dependent -he has asked).

​My income from my job prior to me arriving in USA would take me to the Medicare threshold to be eligible for the subsidy according to the figures an agent gave me today. I had only thought of my partial year working in uk after he had left the office for the day. I don't want to include it if I was going to be taxed again on it so your reply was very helpful thank you.
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Last edited by isi16; Jun 25th 2019 at 3:44 am.
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Old Jun 25th 2019, 5:20 am
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Default Re: Dreaded tax

Originally Posted by isi16 View Post
I have been informed I'm not eligible for Medicaid or Kancare as my pension from uk is too low.
Do you mean too high? Eligibility for Medicaid is for those with income below a certain level (plus other requirements in some states). I see the eligibility requirements for Kansas have an incredibly low income requirement (38% of the federal poverty level) so I presume you are in the crazy position where your income is too high for Medicaid and too low for a subsidy.

Originally Posted by isi16 View Post
I can work part time if I find a suitable admin post and would wish to do so but seemingly they won't take a projected income. Before I moved over I checked all this and was told by an agent that they would......it's sooooo difficult. Pretty much on my own dealing with it too as my son hasn't a clue, his cover is through work (and he can't add me as a dependent -he has asked).

​My income from my job prior to me arriving in USA would take me to the Medicare threshold to be eligible for the subsidy according to the figures an agent gave me today. I had only thought of my partial year working in uk after he had left the office for the day. I don't want to include it if I was going to be taxed again on it so your reply was very helpful thank you.
​​​​​​
Medicare is for those over 65. I presume you mean ACA (Affordable Care Act) threshold, i.e. the point at which you'd be eligible for a subsidy.

If I were in your position I would project a subsidy based on your combined pre-move UK and yearly pension income. Remember this is an estimated subsidy: a reconciliation with the actual subsidy will occur when you file a 2019 tax return in early 2020. By doing this, you'll qualify and get a subsidy up front and, if you do get a part time job that places you roughly in the same position for MAGI, you could choose to file as a part year resident alien.

Last edited by Giantaxe; Jun 25th 2019 at 5:27 am.
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