Marketplace Coverage Affordability Worksheet

Affordability (Marketplace Affordability Worksheet, Excel Spreadsheet 2/11/2015)

Excel Spreadsheet to help calculate if Marketplace Coverage was affordable; simulates worksheet “Marketplace Coverage Affordability Worksheet,” page 11 of Instructions for Form 8965 (Health Coverage Exemptions).   Upload, check it out, and use it in your tax practice.

Unaffordable is when the marketplace affordability worksheet calculation concludes higher than 8%.  Most folks whose MAGI is 100%-400% FPL, will not qualify for Code A for SRP exemption.

Potential Contribution will grow (and PTC will reduce to $0) as household MAGI approaches 400% FPL; and, there is no PTC with household income above 400% FPL.

Calculation depends on LCBP and SLCSP.  If/When client taxpayer does qualify for Code A (UnAffordable), it will be important to keep records of where/when LCBP and SLCSP figures came from.

Data used to calculate marketplace affordability for Code A is readily available for IRS’ automated research and verification – Zip Code, Age, Income, LCBP, SLCSP – everything!  IRS could “auto-audit” every tax return which uses Code A to exempt from SRP, kick out returns that incorrectly claimed Code A, and then send proposal letters to amend the tax returns, charging SRP.