If you’re a full-time RV’er there’s probably more than one state eager to tax your income and assets. This presents an opportunity to choose your tax home, and your Affordable Care Act home. I’ve checked the rules on what determines your ACA home, and the words are very similar to those that state taxing agencies use to determine your tax home.
The test is one of those “preponderance of the evidence” situations. Owning one home and living in it is often enough to determine your tax home by itself. Owning one and renting it to others is not. Living in an RV and rolling through several states for half a year muddies the water. Voter registration is a consideration, as is driver’s license and vehicle registration. If you work for most of the year in one or more other states, you will pay withholding and be required to file there (for at least that part of your income) to get any of it back. I think a case can be made for each of those states as your ACA home.
Your Obamacare state will probably be your primary tax home, which means you must coordinate your planning for state taxes with health insurance options. If your tax state has an income tax, you’ll need to file two state returns if you Workkamp in a different state. Some income tax states are generous to retirees: Kentucky exempts the first $41,000 of retirement income (pensions, SS, IRA withdrawals) for filers of joint returns making it a No Tax to Pay state for most.
Our rig is registered in SD to match our driver’s licenses. Our rented-out house is in NC where we still vote absentee, and Kat wants to work in Campbellsville, KY three or four months each year. Despite offering the best array of insurance plans, we may rule out NC due to its high tax rate and lack of incentives for retirees. SD has only a few insurance options, and I’ve not yet determined which are multi-state. Kentucky has more plan choices, but so far there’s not enough information to choose.
For now, you should learn whether the penury of retirement financing qualifies you for a subsidy. (Assets don’t matter: it’s all about income.) Google “Kaiser Subsidy Calculator” and fill in the 8 or 9 blanks. Then check out your plan choices by state on www.healthcare.gov by clicking “Want to Learn More?’s ” START HERE button. Answer the five easy questions and check out your degree of help. Focus on Silver plans, because they’re the only ones that if qualified for a tax subsidy often also result in lower deductibles, co-pays, and coinsurance.
Don’t try to sign up for an ACA account just yet. You will find it frustrating, and your odds of success are slim. Give their IT contractors a couple more weeks to get it fully functional. We have until December 15 to sign up for coverage that’s effective January 1, 2014.