Success getting healthcare coverage for immigrant parents over 65

[Villanelle 4,121]

2 hours ago, MCMM said:

Hi Missads. Thank you for this information. What I don't understand is: in order for your parents to qualify for a Premium Tax Credit in the Marketplace as Aliens lawfully present in the USA whose income is less than 100% of the Federal Poverty Line for their family size, they are supposed to have to qualify as an Applicable Taxpayer, which means they CANNOT be claimed as dependents by anyone. I understand you DID NOT claim them as dependents, that is clear. But my question is: couldn't you have (I am assuming you support them financially to some extent), or better said, don't you HAVE TO? Because if they CAN be claimed as dependents by someone, they cannot receive the Premium Tax Credit, or at least that's what I understand form my online research (Instructions to Form 8962 attached). Can anyone please shed  a light?

Thank you!

i8962(2).pdf

This issue has been raised before. The answer depends on who you ask. According to the 8962 it says  "No one can claim you as a dependent on a tax return for 2016."  According to the IRS you can claim dependents or you can elect not to claim dependents. There is no tax code that states you must claim everything you are entitled to. 

 

Some people read the above statement and interpret it as 'if no one claimed you on a tax return - you are eligible' others read it as 'if anyone can claim you even if they dont you are not eligible'. There is no official explanation as to which is correct however the marketplace will give you credits as long as no one claims you, so some people take advantage of that and file/accept credits accordingly. 

[missads 59]

Like Damara said, the question about "can" be claimed as a dependent is open to interpretation and has been debated here before. I am not a tax expert, but I interpret it as "if" you claim your parents as a dependent on your taxes (and benefit from a  tax deduction for doing so) then you cannot also claim the APTC for them (i.e. no double dipping.) I don't HAVE to claim them as dependents. My view is that we share the same "physical household" (hence their expenses are "taken care of", I don't technically "support" them by paying money) but we choose to have separate "tax households." IMHO there is nothing wrong with that.

I can tell you my experience FWIW. My parents have filed their federal and state taxes separately ever since they arrived in the US (yes, you can file tax returns where everything is zero - income and taxes.) They received APTC in 2016 and filed Form 8962 with their federal taxes. No problems with the IRS. They are receiving APTC for 2017 and plan to file their taxes with form 8962 attached. They are enrolled in Obamacare for 2018 and will receive APTC again. I know other people who have done the same thing. I have talked to healthcare navigators from two different states, they said there should be no problem as long as my parents file their own tax returns and attach the 8962 form, AND I don't claim them as dependents on my taxes.

 

Specifically about the question of being under the 100% poverty line, look at Pg 7 in the document you attached. Section titled "Alien lawfully present in the United States". It is pertinent to seniors who are recent immigrants and have no income. Because they are not eligible for Medicaid for the first 5 years upon arrival in the US (except in California,) the income requirement has been waived i.e. they can have zero income and may yet be eligible for APTC.

 

Ultimately, it boils down to what you are comfortable with. If you are concerned about this issue, you might want to talk to a tax advisor, or to an official healthcare navigator.

 

What state are you in btw?

 

Edited November 20, 2017 by missads

[missads 59]

On 11/15/2017 at 3:09 PM, ruby4779 said:

So house hold of 6, combined gross income of $184k.  How much do i have to pay for my parents medicare premium.

Why don't you talk to a healthcare navigator? It is open enrollment season, they are out in full force helping people sign up for healthcare. They might be able to suggest something more cost effective. They also have a direct line to talk to people on the inside (state/federal health departments), so they might be able to work something out for you. Medicare is a huge bureaucracy, they might help you cut through the red tape and get some answers.

 

One option might be to stop claiming them as dependents on your tax returns, so your income doesn't apply to them. If they are in a lower income bracket their premiums might go down? Just a thought, talk to a tax advisor.

 

What state are you in btw?

[missads 59]

How to locate a healthcare navigator:

https://localhelp.healthcare.gov/#/

Plug in your zip code and on the next page change the filter to look for an "assister", not an "agent/broker"

 

Some states have their own local health exchanges, in which case you will be redirected to your state's site. Search there.

Individual states also organize enrollment events (but not the federal govt, thanks Donald) If you can find one of those near you, just show up with your loved ones and their documents (green card, ssn, passport) and they will help sign you up on the spot.

 

Open enrollment ends on Dec 15, 2017. Just two weeks left to sign up...

[mr_citizen_2013 2]

My parents recently immigrated to US and got their insurance with APTC from healthcare.gov. They don't earn anything in the US. What's the best way to show their income in Zero? Can you please share a sample letter you have used?

Thanks!

[missads 59]

19 hours ago, mr_citizen_2013 said:

My parents recently immigrated to US and got their insurance with APTC from healthcare.gov. They don't earn anything in the US. What's the best way to show their income in Zero? Can you please share a sample letter you have used?

Thanks!

To prove zero income, my parents provided a copy of their tax returns from the previous year that showed zero income (and zero taxes.)

 

Since your parents arrived recently and have likely not filed their taxes yet, they could provide a signed affidavit (fancy term for a legal letter) instead. It should declare under penalty of perjury that they have zero income in the US. Also include that they haven't filed their taxes yet, but will do so in early 2018 and provide a copy of it as further evidence. Get the letter notarized at your bank for free. Your parents must sign the letter in the Notary's presence.

 

Please keep in mind that everything stated in the affidavit MUST be 100% true.

 

How to write an affidavit: https://oregonlawhelp.org/resource/how-to-write-an-affidavit/download/38BAAD6E-E8F9-0ABC-F5BA-ACFD8E7B10E0

[Boiler 44,986]

Income would be world wide, not just US.

 

No Pension?

 

Tax credit requires tax to credit.

[missads 59]

18 minutes ago, Boiler said:

Tax credit requires tax to credit.

Says who? Are you a tax expert? No offense, but is that just your opinion then?

 

My parents pay zero taxes and get the APTC (Advance Premium Tax Credit.) Neither the IRS nor Obamacare (healthcare.gov) has objected. The tax credit is paid directly to the insurance company, not to us. This will be the 3rd year that my parents will have partaken in this lawful entitlement. They file their tax returns (zero income, zero taxes) every year, no issues so far.

 

You are entitled to your opinion, but you also need to distinguish facts from speculation.

[Umka36 781]

Enjoy it while it last, as this "lawful" entitlement program won't last long.

[missads 59]

Less than a week to go. Open Enrollment for 2018 ends Dec. 15...

[fnuhenry 0]

Nice post lots of info.

 

My situation is little different hopefully someone from this forum can help

 

2016 - Parents visited (Vising VISA) us for more than 6 Months and We claimed them as dependents.

2017 - They migrated to USA with AOS (still pending), Got SSN and my Dad works parttime. He plans to file tax return as Head of Family household

2018 - He will continue to work and file tax return as Head of Family household

 

Are they eligible to buy insurance from Healthcare.gov(i am 99% sure they are eligible) and eligible for APTC .

 

Thank you in advance  

 

[databit 328]

3 hours ago, fnuhenry said:

my Dad works parttime. He plans to file tax return as Head of Family household

2018 - He will continue to work and file tax return as Head of Family household

 

Not really an answer to your question, but I would strongly urge your dad to work full-time or more, so he can get as many credits toward Medicare as possible (presuming he is working a job that deducts for Medicare!) in the years he has left. as well as a little Social Security.

[missads 59]

On 12/12/2017 at 12:46 PM, fnuhenry said:

Nice post lots of info.

 

My situation is little different hopefully someone from this forum can help

 

2016 - Parents visited (Vising VISA) us for more than 6 Months and We claimed them as dependents.

2017 - They migrated to USA with AOS (still pending), Got SSN and my Dad works parttime. He plans to file tax return as Head of Family household

2018 - He will continue to work and file tax return as Head of Family household

 

Are they eligible to buy insurance from Healthcare.gov(i am 99% sure they are eligible) and eligible for APTC .

 

Thank you in advance  

 

It's not clear to me whether you and your dad are going to file taxes together, with him as Head of Family. If you do that, your income would be added to his and so his APTC would be very low (assuming you earn a fair amount of money.)

 

I would suggest two things (please consult a tax advisor on this):

 

1. For 2017 taxes, your dad files taxes separately from yours. Don't claim your parents as dependents.

 

2. Open Enrollment ends in two days. Sign up your parents quickly on healthcare.gov. As part of the application process, they will tell  you whether your parents are eligible for APTC, and how much it will be.

 

Since your 2017 taxes haven't been filed yet, there is still some room to decide what would be the most beneficial way for you as a family to file taxes.

 

Don't mix "Head of Household" for tax purposes with the "real life" head of household. I am aware in some cultures a son can't claim to be head of household while his dad is still around. Tax household and real life household are completely separate!

[missads 59]

For those of you with zero/low income parents who signed up for healthcare for 2018: 

 

You will need to send a copy of their 2017 tax returns as proof of income. Do their taxes online for free at

 

https://turbotax.intuit.com/taxfreedom/

 

(Bit early for filing 2017 taxes, the site should be active by mid-January)

[ahmed alin 2]

My mother who’s under 65 years old, came to live with me early 2017 as permit resident. She has few medical conditions which costed me a lot to take her to doctors and I was financially and emotionally drained. I did few search and I came across this topic. Thanks to Missads, I called the marketplace on December last year and they guided me through the application process. Like Missads stated in earlier posts, I listed her as household (didn’t claim her in my 2017 taxes) with zero income. I was told she was eligible for Tax Credits but she needed to provide a proof of income by march 31^st. Few weeks ago, I filed her taxes as household with zero income and uploaded the form EZ 1040 to her online account with the marketplace, and a week later they accepted the uploaded document as proof of income and her application was completed. Luckily, my mother found a job which provides her with health insurance but she needs to wait 90 days to qualify for the health insurance, until then she will still use ObamaCare or AHC. I wanted to share my experience since there are a lot negative people here who will try to discourage with zero knowledge with this process. Again thanks Missads for starting this