Can Selling Assets Help You Qualify for ACA Subsidies?
The Affordable Care Act (ACA) is designed to make health insurance more affordable for everyone. One way it does this is through subsidies, which are financial assistance that can lower your monthly premiums and out-of-pocket costs.
To qualify for subsidies, you must meet certain income requirements. The amount of subsidy you receive is based on your income and family size.
What is income?
When it comes to ACA subsidies, income is defined as your “modified adjusted gross income” (MAGI). MAGI is your adjusted gross income (AGI) plus certain other types of income, such as tax-exempt interest and untaxed foreign income.
For 2024, the MAGI income limits for ACA subsidies are as follows:
For individuals: Up to $53,000
For families of four: Up to $107,000
If your MAGI is below these limits, you may qualify for subsidies. The amount of subsidy you receive will depend on your income and family size.
Can I sell assets to qualify for ACA subsidies?
In general, selling assets will not affect your MAGI, so it will not affect your eligibility for ACA subsidies. However, there are some exceptions to this rule.
For example, selling a home that you have lived in for less than two years could result in a capital gain, which would be included in your MAGI.
Similarly, selling stocks or other investments that you have held for less than a year could also result in a capital gain that would be included in your MAGI. If you are considering selling assets to qualify for ACA subsidies, it is important to speak to a tax advisor to make sure that you understand the tax implications of doing so.
Other ways to qualify for ACA subsidies
In addition to selling assets, there are other ways to qualify for ACA subsidies.
For example, you may be eligible for subsidies if you:
Are unemployed
Have low income
Are a member of a Native American tribe
Are a veteran
If you are not sure if you qualify for ACA subsidies, you can use the HealthCare.gov subsidy calculator to estimate the amount of subsidy you may receive.
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