Hello All!
CONFIRMATION OF BASELINE KNOWLEDGE: My name is Joshua Brooker. I am a broker and have been since 2011. I hold Insurance, Investment, and Tax licenses. I currently sit in Legislative roles with the National Association of Health Underwriters, and Health Agents for America. As well, I'm in government working groups with CMS(the agency behind Healthcare.gov) and Pennie at the state level. Additionally, we have clients in 11 states and the individual markets are our primary focus.
1. Section 2305 of the American Rescue Plan Act confirms the 133% FPL understanding referenced by the person who posed the question.
Source: https://www.congress.gov/bill/117th-congress/house-bill/1319/text#:~:text=new%20%0Asubsection%3A%0A%...
We actually read ARP cover to cover and expanded on the implications here: https://www.pahealthadvocates.com/post/unpacking-arpa-consumer-edition
2. Both Federal(Healthcare.gov) and State(Pennie, CoveredCalifornia, GetCoveredNJ, beWellNM...etc.) systems implemented this regulation pretty quickly by adding a simple button to their system indicating that so long as you are ELIGIBLE for unemployment income in 2021 that you could receive this benefit. This was exclusively available only if the primary filer and spouse were eligible. For Instance, if you and a spouse were working, but your child who is an adult-dependent received unemployment, this would not apply. But if either you or your spouse were eligible then eligibility would apply. Benefits could be available for as little as 1 week and eligibility spanned the full year.
3. The Reconcile Process: Unlike the federal and state-based systems that clearly made this benefit available, the IRS was less clear for reporting purposes. There is not a box on a form designated to have a consumer attest they were eligible for unemployment. Instead, on form 8962, the form used to report your tax credits, Line 5 says "(see instructions)" The instructions advise the person preparing the return to MANUALLY override line 5 to 133 IF you were eligible to receive unemployment. We are currently doing a national initiative because this was not clearly articulated in annual continuing education for preparers, and it is tucked away.
Source: https://www.irs.gov/forms-pubs/changes-to-the-instructions-form-8962-2021
When ARP was being finalized in March 2021, the Congressional Budget Office anticipated 1.3 million consumers would benefit from this provision. This is only true if the form is properly filled out and consumers don't wrongfully believe they owe back because this change isn't disclosed to the consumer or their council.
https://www.healthaffairs.org/do/10.1377/forefront.[phone number removed]37/full/
Good luck!
