Health Insurance for Newly Retired Immigrants
I’m unsure if this is best suited for a health insurance or tax discussion, so I wanted to share my situation here.
My in-laws are nearing the completion of their green card process and will soon be relocating from Vietnam to live with us. As new immigrants, they won’t be eligible for Medicare, so I’ve been exploring options on healthcare.gov. I came across a post mentioning someone who employed their parents as in-home caregivers to generate enough income to qualify for ACA tax credits. This seems to be a way to avoid Medicaid due to low income.
Is this approach legal? Would it be a good idea to consult a tax specialist to ensure proper filing? My in-laws are retired and have no plans for regular employment, so this would be their main source of income for tax purposes. We’re in a financial position to support them regardless, but having some extra flexibility would be beneficial.
It’s great that you’re looking into health insurance options for your in-laws as they transition to life in the U.S. Here are some points to consider regarding your situation:
Health Insurance Options: As new immigrants without Medicare eligibility, enrolling them in a health plan through the Health Insurance Marketplace (healthcare.gov) is a good option. They may qualify for subsidies based on your income, which can help reduce premiums.
Income and ACA Subsidies: The suggestion of hiring them as in-home caregivers could potentially allow them to qualify for the ACA tax credits, as it would provide them with some taxable income. However, it’s important to ensure that the arrangement is legitimate and meets all IRS guidelines.
Legal Considerations: Hiring your in-laws would require following proper employment protocols. This includes proper tax withholding, providing a W-2, and potentially paying payroll taxes. If done incorrectly, it could raise red flags with the IRS.
Consult a Tax Specialist: Given the complexities around employment and tax implications for both the employees and the employer, consulting a tax specialist or accountant familiar with these issues would be advisable. They can help ensure that all aspects are handled correctly and discuss any alternative strategies that may be available for covering health insurance.
Medicaid Considerations: If their income is low, it’s also worth exploring eligibility for Medicaid in your state, as some states provide more options for low-income residents, including new immigrants.
Overall, while hiring them could be a viable option, it’s crucial to do it legally and consult with professionals who can guide you through the process. Best of luck with the transition!