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Old 02-05-2015, 09:07 PM
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Join Date: Feb 2015
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Unemployed for a portion of the year

So im not sure if this is a common issue that people face but I've never had to deal with it before so forgive me if im being repetitive.

To start... I live in NYC.

I was employed from January to April. At the end of April i was let go from my job and went on NY unemployment. so in first 4 months at my job i made about 28k and in the 6 months of unemployment, while actively looking for a new job, i made roughly 10,500 (yes i lived in NYC on that, its rough.. thank god for a degree in finance to help money management). I made the choice not to have taxes taken out of the unemployment knowing full well that i would have to pay for that at the end of the year. but at the time having every penny was key and i knew that i was being over taxed on my wages from my other job so that would help offset the taxes owed on unemployment.

Now for my question/concern......

i gathered pretty much every tax document for 2014 and ran through turbo tax to see how this tax situation would play out... After entering my W2 and 1099 from unemployment i was in the red about 200 bucks... which i was completely expecting, so that wasn't a shock. Then the health insurance thing reared its ugly head...

I had state issued insurance which i was basically forced into because i would have to pay a penalty for not having insurance or about 700 a month for COBRA.... my premium was about 60 bucks a month... this was derived by having my premium subsidized by fed $. without that it would have been about 350 a month... when i signed up for insurance they asked "whats your monthly income" , in which i answered $1600/month in unemployment. That is how the subsidy was determined.

Fast forward to now when im figuring out my taxes.... i now owe 1500 bucks in taxes because they are using my AGI for the year to determine if i was eligible for a subsidy.... Am i understanding that i either could have had no insurance... or pay 350 a month for insurance while only collecting 400 a week in income....

I know this is kind of a long drawn out question/situation so any help would be appreciated...

to review...

employed: jan - april ---- 28k
unemployed: 6 months ----- 10,500
insurance subsidized because of drastic decrease in income, but owe because in the overall year i made 40k'ish and that number isnt eligible for a subsidy...



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