Medicaid, California, Valencia California discussed on Bucket Strategy Investing
Get some emails. I haven't yet. Seventy million today. So hold on. We'll get to it. Just want to get through some of these calls because we do have people on hold again. Our number eight seven seven planner karnal Valencia California's next. Hello carl. Are you guys doing today? Good. What's up? All right. You said a quick question if I pay per home, I medical premium. Myself directly to for example, is a permanent. A and I and I use it against. You self employed. No. No. It would become part of your qualified medical expenses that you could use on a schedule a itemized deduction. But only to the extent of this year it exceed seven and a half percent of your total adjusted gross income it does not reduce your gross income. So it's a kind of a back door to rather than a front door deduction. That doesn't come off the top comes off the back. And but most people are not going to be able to get that deduction. Because most people now fewer and fewer people are itemizing their deductions. Most people don't have medical expenses that exceed seven and a half percent of their adjusted gross income. And so if you itemize and you've got a whole bunch of expenses and your age is not too high. You may be able to get some deduction. That is it's a small business and. I don't. Eight through the or can I still come back around and added to? I'd have to look at the regulations, but I would talk to your tax preparer about that in trying to find a way to make a deductible because you know, health insurance for a sole proprietor is deductible, at least to some extent more. So than it is for softball. You have your own escort. You could potentially do that protect your tax repair on that you probably can make it work. Yeah. Keep up the great job perfect show. Thank you. Appreciate the call. So he was talking about just he does not have a health plan at work. Yes. He you know, he pays out of pocket, and unfortunately, that's different than a group health plan fringe benefit through work. And while it is maybe deductible. First off you have to itemize and the deductible expenses, the total of all qualified medical expenses this year. More than seven and a half percent. And only of the about that exceed seventy percent of your gross income. It's deductible on schedule. A and when does it go back to ten percent? I think to ten percent. Why did I think it was this year? We are this year. Nineteen already it is twenty nine hundred this year. Yeah. I I it seemed to happen right around the first part of the month. I forgot really early for switch gears January switched. Here's all right. All right. Well, I got you on that one twenty nine. Yeah. It's twenty nineteen. Wanted to go this quick. Well, I was gonna say something. But then I thought well, you're the professor I mean, you know, you're on a roll here. Yeah. Yeah. It's not next year. It is this year. It goes it's actually next year's tax return. Ten percent. Ten percent of your tax return. How many people really do have? I mean, there are people that do have that. I get it. But that they have medical expenses that exceed ten percent of their adjusted gross income. There are people I understand that do have that. But it's just not all that many. And that's a lot of expenses. And again, by the way, you cannot deduct the first ten percent. It's only every anything above ten percent that you can deduct as a medical expenses itemize. So if my adjusted gross income is sixty thousand dollars my expenses have to exceed six to be even part of the schedule a that. Then the total of schedule a has to exceed twelve or twenty four thousand to be deductible, depending on whether I'm single or married. Well, yeah. And and. I'm guessing that you in that instance, it probably well, maybe you don't have a mortgage. I don't know. I was gonna say if you've got that many medical expenses, they're probably enough to push you over that twelve or twenty four threshold. But maybe not maybe not it really depends. It's only the amount over the threshold seven. I'm only get into two thousand rashly. Yes. That's if my age is sixty one hundred Mike bar is ten thousand ten percent, right, man. That's getting up there. It really is. Wow. All right. Anyway. Well, fortunately, medical expenses are not that high never mind. Yeah. The premiums are well lately they've got up to. I can think back to the eighties. When I first started having premiums taken out of my check, and I was like twenty twenty two twenty three or something. But it was like, I think it was eight bucks, eight bucks. A check something like that. And you complained about now, I really didn't. I just said oh good. I got health insurance. I mean, it just seemed like a no brainer kind of thing. And with before long it had gone up to ten twelve and, you know, twenty and and then you add, you know, we got married Mary family. I don't actually know what it was last time. I had all four of us on. It's been a few years. I think mine was in the eleven hundred and that was just my share of your personal share the company paid part of that too. Yeah. But you had. The family coverage. Yeah. Mine was around eight hundred I think something like that eight hundred dollars a month. Which was you know, it seemed like it was outrageous. But fortunately, they said those were the above the line deduction. So as money that I didn't even have to pay taxes on. So that was helpful if I had to pay attacks on if it came on, I if it was all post tax money. I mean that would've just been I I can't imagine insult on top of injury. You really would have been you really wanna ban. But actually prior to I think it was around thirty years ago, maybe a little bit less. It was not deductible prior to it was not a deductible expense. It just happened that they made it that way way back at a certain time. So thankfully, yes. Yes. All right. Eight seven seven planner once again, P L A double N E R, eight seven seven seven five two six six three seven. Let's see. I get to an Email here. We were talking about this. Oh this had to do with taxable income. Joseph in Redding. California says I retired at sixty and have very little taxable income I tried to get insurance through covered California and the ACA subsidy. But was told my income was too low, and I would only be eligible for medical now medical is the California version of the Medicaid, right? When many with medical I need to fill out paperwork every month to show, I'm still eligible while the medical is free. I don't want to do the paperwork. Well, what should I do says Joseph? Well, well, they go on adjusted gross income on at a modified adjusted gross income actually not taxable income. And the only thing you need to do is if you have IRA's show income from your IRA do conversions shows some taxable income get it up into the level. You know, the very bottom reaches work. It's your way from the Medicaid area and into the, you know, the subsidy area, you just have to show some income. Have you don't have any IRA's gotta get a job or something? You got to. He would want to have something that shows income, you don't just make it up. But I mean, you know. Somebody while back that was contemplating. I don't know if they did contemplating making up income from some side job or something somewhere and putting it on the tax return for reasons very similar to this is they would show the income, and it probably wouldn't be putting them into an area where there would pay taxes. No. But it would allow them to not do the, Medicaid and get onto one of the subsidized programs where they pay very little for their health insurance law. Exactly because there's a point in there, and it's not very high. But there's a point in that income where the subsidies are actually very generous because they're designed to be for the, you know, people who don't actually have a whole lot of income. But it is true. If your income is too low, they'll just put you on Medicaid, Medicare, Medicaid, whatever Zona Nevada, meta Vada that Atta. How how they do it in Rhode Island? Meadow meadow island. Jokey, obviously. But yes, sometimes there were reasons why you may want to actually raise your adjusted gross income and that happens to be one of them. Can you think of any others standard of living? We've seen people say look I need to show a higher income. So started distribution from my IRA. So that I can qualify for a fucking refinance my house, I can get they needed to show more income than they were that they had to be able to qualify for. They had plenty of money. They just didn't weren't taking it really need to show that I have a higher income. And so I want to get this loan that brings me that brings me back once again to when I bought my first house like.