If you are currently considering
divorce, you should consider how this can boost your health insurance subsidies.
According to Idea Stream, when a couple divorces each person's eligibility
for insurance-related tax credits will be based on his or her own annual
income. When the former spouse's income isn't counted, this causes
Normally, premium tax credits are available to people with incomes up to
400% of the 2013 federal poverty level. People are often asked to project
their income for the following year on a premium tax credit application.
If someone estimates that their income will be more than 10 percent lower
than the previous year's data would suggest, then the system will
flag this application. At tax time, the IRS will reconcile an individual
or family's actual income with the amount that was projected on the
application. People who received too much in credits may need to repay
some of the finances.
Individuals who are separated but not divorces may encounter a different
situation. For these people, chances are that each party will file taxes
as being married, filing separately. Neither will be eligible for premium
tax credits on the exchange as a result. If you are wondering how divorce
or separation will affect health insurance subsidies and tax credits,
talk with a tax attorney and a family law attorney.
Divorce naturally has tax implications. If you have the right attorney
on your side, you may be able to work through these implications and anticipate
the results of certain actions. This can help you to save money in the
long run. Don't hesitate to call a committed and hardworking attorney
to assist you in your case today! With the right Los Angeles divorce lawyer
there to help, you may be able to avoid expenses with taxes!