GoonSquad wrote:
The point is, if they were paying $14,000.00 to avoid the penalty, they are extremely wealthy (because their penalty calculated at 2.5% of income) must exceed $14k, (that means they are making more than $350,000.00/year) or they are stupid, because it would be much cheaper to just pay the penalty.
I explicitly stated that the $14,000 was going towards Obamacare premiums. They are seniors, and wanted health care coverage.
They got the ACA subsidies last year.
This year , however, as a couple they are going to make like $50,000 total income. They qualify for some premium subsidies, however, they calculated they were going to have to re-pay Obamacare $14,000.
Well, they cancelled quickly.
They were ecstatic when they heard Trump was helping the little people by having the IRS forgo the Obamacare penalty.
No, this does not make any sense. If they are seniors, then they would qualify for medicare. If they qualify for subsidies under Obamacare then they are under 65, make less than 400% of federal poverty level and would pay a maximum of 8% for premiums. That would be much less than $14k.
I'm gonna haft call BS. Sorry.