Health insurance as an investor

[Mack Bailey]

Here's my hypothetical future situation: I work part time for 15 an hour sometimes 40 hours a week sometimes much less. Since I'm not full time my concern is I wont be able to get affordable healthcare. I plan on eventually having no W-2 at all. Is there some sort of program for self employed people to help pay for this? What do some of you investors have for healthcare plans?

[Eamonn McElroy]

@Mack Bailey

If you're self-employed and decide to purchase health insurance through the federal or a state exchange (if CT has a state exchange), your monthly payment will be driven off of estimated taxable income for the upcoming year.

If your estimated taxable income is low enough, you may receive the "Premium Tax Credit" in advance that will reduce the payments you must make.

Note that if you receive a premium tax credit in advance, you must file Form 8962 for the tax year in question that you received the advance premium tax credit.  This form acts as a true-up between what you initially estimated your taxable income to be versus what it actually shakes out to be (i.e. it determines what premium tax credit you should receive vs what advance premium tax credit you actually received and your income tax return liability will be modified based on the disparity between these two amounts).

Highly recommend you consult your tax advisor on this...

It won't be possible for us to give you a ballpark on what you'll pay as there are varying levels of coverage -- of which you'll choose based on your financial profile, health, and risk tolerance, and, as previously stated, your projected taxable income may modify the monthly payments.