Affordable care act and SS impact
I was approved for the affordable care act in 2022 and I receive a $600.00 credit each month. I will turn 65 this August. I will than switch to Medicare. My question is: I would like to start taking my social security at that time. But by doing that it will increase my income for the year. Will I need to payback part of that credit when processing my taxes for 2022 or should i just wait till 2023 to take SS. Just need some clarification.
Terry Says
Your Social Security definitely counts as income toward your ACA subsidy. So this is an interesting question. It will, however, only impact the subsidy for the first 7 months of the year as you will drop the policy when you get on Medicare. And you will only be collecting SS for 5 months. So it can’t have such a major impact.
But if you wait to collect SS, your check will be larger. And the calculations for ACA will be easier!
