Another Obamacare loophole is discovered.
Save money on Obamacare
Just when we think it can't possibly get any better, we learn about new money saving loopholes available in the Obamacare plan.
I just learned today that those eligible for Federal assistance to help pay for their Obamacare may be in for a big shock. The Federal dollars they receive will be treated as taxable income when they file their taxes. I'm reasonably sure none of them were told this fact or understood this when they signed up for Obamacare.
Loophole #1 - Part Time Employees
Employers with over 50 employees were quick to learn that cutting all of their employees to part-time status exempted them from paying for Obamacare. The definition of part-time employees was determined to be any employee working less than 30 hours per week. For many employers, this was the gift they needed to save their business. Large restaurant chains immediately decided to begin using part-time employees was the way to go, and they did.
Almost overnight, thousands of formally full-time employees found themselves reduced to part-time status and scheduled for 29 hours or less per week. This was a huge financial blow forcing many employees to seek yet another part-time job to pay their bills.
This loophole was great for employers, but did nothing for individuals who didn't mind working 40 hours per week that is. There will of course be those who feel that asking them to work 29 hours per week is cruel and unusual punishment.
As little as one week ago today Jay Carney and President Obama were still claiming this was not happening, but it is.
Loophole #2- Get a divorce
In the interest of fairness, the government has now come up with a very simple solution for married couples to save large sums of money on Obamacare.
This money saving loophole is quite simple. Get divorced! It's just that simple, get a divorce and your Obamacare costs are dramatically cut because you may be eligible for subsidies.
For a married couple, the costs of Obamacare are based on their combined income. If both of them are employed and making decent wages, their combined income will put them into the highest price category for Obamacare, and make them ineligible for subsidies.
A married couple in their 60's with no children living with them are limited to a combined annual income of $62,041 or their Obamacare premiums will go way up. If they stay married, their Obamacare premium would be $16,382 next year.
If they divorce and continue living together, they can save a great deal of money. Unmarried individuals are allowed to earn $45,960 before they lose their Obamacare subsidies. As single persons the divorced couple can each report an annual income of $31,020.50 giving them a combined net Obamacare premium of $5,354 for the year. By getting divorced, they save $11,028 per year on Obamacare premiums.
Another example of how this loophole would work concerns a 40 year old married couple with two children. Their combined annual income is $93,000, and subsidies disappear at $92,401 for married couples with two children. They would pay $11,547 in Obamacare premiums next year.
If this couple gets divorced and they give child custody to the spouse with the lower income, one would pay $3,857 and the other would pay $460 for a total of $4,317. Getting divorced would save them $7,230 next year.
Now how is this for a simple solution?
Who benefits the most?
Now let's see who would benefit the most from this loophole. Obviously the used-to-be-married couples saving over $10,000 per year will benefit. The big winner will probably be the Divorce Lawyers who will have people waiting for their services. I would expect to start seeing TV ads for Divorce Lawyers who can handle the whole divorce for you over the internet.
Because Obamacare is being administered by the IRS, is it any wonder that loopholes in the law would pop to the surface? The IRS played the loophole game for years. They seem to favor special interest groups who are able to buy their own loophole through the services of a lobbyist.
Be careful because some states have laws limiting the time a couple can cohabit and claim they are not married. This would require some couples to remarry on Monday and get divorced again on Friday.
The IRS will also be watching for couples claiming not to be married so they may collect Obamacare subsides. Those who are caught by the IRS "Marriage Police" can be forced to pay back all of the undeserved tax credits they collected. This could amount to a substantial amount of money.
Don't be surprised if that nice young couple next door announces they are getting divorced. It is not because they no longer love each other, it is merely a way they will be able to afford their health care premiums in the coming years.
This is what I was looking for........
It is important to be able to recognize a loophole when one appears. This is what they look like.
Would you consider divorce to save money on Obamacare?
Would you consider divorce to save money on Obamacare?See results without voting
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