Using parents foreign pension income for ACA (split)

[garylong 0]

Does anyone have their parents file their foreign pensions as part of their income on their taxes? This would help the zero income and get the state subsidys.

[garylong 0]

On 5/17/2017 at 6:29 AM, missads said:

I have been away for a while, but thought I'd provide a quick update (hopefully without getting into an argument with anyone.)

 

My parents (zero income, LPR, not claimed as dependents on my taxes) have been legally enrolled in Obamacare for two years now. They have received PTC (subsidy) that makes the insurance very affordable. They have filed tax returns (federal and state) with the subsidy reported on Form 8962. They had to use the "married filing jointly" option while filing their tax returns independent of mine (I did not claim them as dependents even though we both entered the same physical address in our respective tax returns.) No issues whatsoever.

 

We relocated to another state this year and enrolled in that state's Obamacare program, again with no issues. This time we enrolled in-person through an official healthcare navigator at a state-run signup event. She too confirmed that LPR parents are eligible for Obamacare and are entitled to PTC if they have zero income and file their taxes separately.

 

Just putting this information out there for your reference. Believe the naysayers if you want, but Obamacare with PTC is available to LPR parents (remember - zero income and NEVER claimed as dependents on their child's taxes.)

 

God bless Obama! My parent suffered a major illness and I would have been bankrupt by now if not for Obamacare...

 

What happens with your parents foreign pension, was this not reported on their US taxes,  effectively giving them an income that allows them for ACA?

[garylong 0]

On 1/7/2021 at 11:49 AM, yonayumi said:

This thread is really helpful. I have been looking for my parents affordable health insurance options when this crossed my browser. I hope missads is still active with this site or any any one would be able to help.

 

My parents were both 74, 1.5yrs in US (WA state), green card holders, no work since entering US, I never claim them as my dependent. I've just recently searched through WA healthplan finder and to make the story short-the navigator told me my parents would need to file $0 income jointly, separate to mine. To lower down the cost of plan after Premium Tax Credit (PTC). My parents never filed income tax thinking not necessary because of their age but now a requirement to avail the affordable health plan.

 

My question is - aside from filing $0 income tax for 2020, is there any other form or information my parents need to submit for them to become eligible? I will discuss this with my accountant, and hopefully they agree with the navigator. Health Plan enrollment was extended to Jan 15, a week to act and decide.     

 

Thank you in advance.

 

Do you parents not have foreign pension to file as their income on 1040?

[Penguin_ie 5,994]

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[missads 59]

15 hours ago, garylong said:

 

What happens with your parents foreign pension, was this not reported on their US taxes,  effectively giving them an income that allows them for ACA?

If your parents have foreign pension, where do they pay taxes? If they pay taxes in their home country, I don't think it necessarily needs to be reported as income here. At most, they might need to report the pension as income + report the taxes paid in the foreign country, I don't remember which specific one. You should talk to a tax accountant about this. I can help with Obamacare, I am not an expert on taxes!

[garylong 0]

2 hours ago, missads said:

If your parents have foreign pension, where do they pay taxes? If they pay taxes in their home country, I don't think it necessarily needs to be reported as income here. At most, they might need to report the pension as income + report the taxes paid in the foreign country, I don't remember which specific one. You should talk to a tax accountant about this. I can help with Obamacare, I am not an expert on taxes!

Greencard holders like US citizens get taxed on their worldwide income. Depending where they are from there might be a tax treaty negating the double taxation. However the country of residence is the one that taxes. If your parents are from the UK they should of gotten a Nil - Tax code to get tax free pension income in the UK, to then declare and pay here in the US. 
 

That income then can be used for the ACA. Your parents shouldn’t be filing $0 tax returns in the US unless they truly do have no income for anywhere in the world. 

[missads 59]

15 hours ago, garylong said:

Greencard holders like US citizens get taxed on their worldwide income. Depending where they are from there might be a tax treaty negating the double taxation. However the country of residence is the one that taxes. If your parents are from the UK they should of gotten a Nil - Tax code to get tax free pension income in the UK, to then declare and pay here in the US. 
 

That income then can be used for the ACA. Your parents shouldn’t be filing $0 tax returns in the US unless they truly do have no income for anywhere in the world. 

I thought I was trying to help you and your family? I'm not sure how this turned into a federal case about how my parents should file their taxes. So why don't we keep the focus on your parents and their situation. Sounds like you might have the taxes part figured out already.

 

In any case, like I said in my previous post, I can only share what I know about issues related to Obamacare enrollment. For expert advice on your parents' specific tax situation, please consult an accountant / CPA.

Edited September 1, 2022 by missads