W2 Income and Covered California Kaiser Health Insurance

[sv_siri]

Hi,

Will I get any tax credits, benefits or do Schedule or do something to reduces taxes?

• I have one W2 income and filing MFJ.
• I buy Covered California Health Insurance. My insurance provider is Kaiser.
• Covered California issue Form 3895 and Form 1095-A
• I am paying after tax dollars and close to 20K per year for family of 3. 
• My employer is not providing any health insurance. 

Can I do anything and save some money?

Thanks

SV

[Critter-3]

Maybe & it depends.  When you signed up for the Marketplace insurance you had to indicate an estimate of how much you would make during the year.  Based on that amount you were given a possible tax credit you could use in full or part to reduce the monthly payments.  If your income is less you could be eligible for a credit on your return.  If the income is more you may owe back some/part of the credit you took in advance. 

[sv_siri]

I guess you are talking about the money I paid and tax credits based on my income.

I researched and my analysis are below:

Say, hypothetically,

  Single W2 income ! 180K$, Filing status is MFJ, wife does not work and a kid as dependent.

  My employer do not offer any insurances. I have to pay from my pocket i.e., post tax dollars.

  I am paying Kaiser through Covered California as 15K$ for the whole year.

  Without tax credits it is 20K$ per year. In this scenario, I would be paying the remaining 5K$.

  I am not entitled any credit because of the high income threshold.

  Say, my income is 150K$, and I am suppose to pay only 14K$ per year and since I paid 15K$, I will get 1K$ due to the tax credit. In this scenario, I will be getting back the money. Assuming I am entitled for tax credit and did not hit the high income threshold.

I wrote the numbers for understanding and not actual numbers, used to understand tax credits. 

-----------------

I am interested to see if I can get any other methods or any other way of doing forms, tax benefits because I am paying post tax dollars.

Regards

SSV

[Critter-3]

Your scenarios are correct.