Calculating Social Security Income for ACA Marketplace Applications
Applying for ACA health insurance can be straightforward for some, but for others, it can be a bit confusing, especially when trying to determine how to include Social Security income. This blog will specifically focus on how to calculate Social Security income for ACA marketplace applications.
What is ACA Health Insurance?
ACA, also known as the Affordable Care Act, is a health care reform law that has made it easier for many Americans to get health insurance. The ACA created a marketplace where individuals and families can compare and purchase health insurance plans.
How is Social Security Income Calculated for ACA Applications?
When applying for ACA health insurance, you’re required to provide your household income. This includes all sources of income, such as wages, salaries, self-employment income, and Social Security benefits. For households with more than one member, income from all household members must be included.
Social Security income is considered taxable income and must be reported on your ACA application. However, you may be able to reduce your taxable Social Security income if you meet certain requirements. For example, if you are over age 65 and have other sources of income, you may be able to exclude part of your Social Security income from taxation.
How to Include Social Security Income on Your ACA Application?
If your spouse is 65 or older, you should only include 85% of their Social Security income on your ACA application. This is because 15% of Social Security income for those 65 or older is considered tax-free, and therefore not included in your taxable income.
If your spouse is under age 65, you should include 100% of their Social Security income on your ACA application.
What if I’m Not Sure How Much of My Social Security Income to Include?
If you are not sure how much of your Social Security income to include on your ACA application, you can consult with a licensed insurance representative. They can help you determine your taxable income and calculate the amount of Social Security income you should report to the marketplace.
Additional Resources:
– [Social Security Administration website](https://www.ssa.gov/)
– [Healthcare.gov](https://www.healthcare.gov/)
– [National Association of Insurance Commissioners](https://www.naic.org/)
We hope this blog has helped you better understand how to calculate Social Security income for ACA marketplace applications. If you have any further questions or need assistance with your ACA application, please do not hesitate to reach out to a licensed insurance agent, who can provide you with personalized guidance and support.
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