Health Insurance for Newly Retired Immigrants
I’m not entirely sure where to post this, as it blends aspects of both health insurance and tax inquiries.
Here’s the situation: my in-laws are on the verge of receiving their green cards and will be relocating from Vietnam to live with us. Since they are new immigrants, I understand they won’t be eligible for Medicare. Therefore, I’m exploring options through healthcare.gov. I came across a discussion where someone mentioned hiring their parents as an in-home caregiver to generate enough income for the ACA tax credit — with lower incomes potentially requiring them to apply for Medicaid instead.
Is this a legal approach? Would it be wise to consult a tax professional to ensure everything is filed correctly? Since they’re retired and don’t intend to seek regular employment, this would be their main source of income for tax purposes. Although we can manage regardless, we’d appreciate having a little more flexibility.
It’s great to hear that your in-laws are planning to move closer to you! Navigating health insurance as new immigrants can definitely be complex. Here are some points to consider regarding hiring your in-laws as in-home nanny and the associated health insurance options:
Legal Considerations: Hiring your in-laws as in-home caregivers can potentially qualify them for income that might allow them to access health insurance through the Affordable Care Act (ACA) tax credits. However, it’s essential that this arrangement is legitimate. The work they do needs to be real and necessary, and you should comply with all employment laws, including tax withholdings and proper classification as employees or independent contractors.
Tax Implications: If they are earning income, it will be important to report that income appropriately. This is where a tax specialist can be very beneficial. They can help you navigate the implications of this arrangement and ensure that both you and your in-laws are meeting your tax obligations while potentially maximizing any tax credits available to them.
Medicaid vs. ACA: As you mentioned, too little income might push them into Medicaid eligibility. The key is to find a balance where they have enough income to qualify for ACA tax credits without inadvertently making them ineligible for other benefits. A tax professional can assist in strategizing this.
Health Insurance Options: Once you’re able to determine their income level, you can explore different plans on health care.gov. The subsidies they may qualify for can significantly reduce their premium costs for ACA plans.
Overall, it sounds like a proactive step to ensure they have access to healthcare. I would recommend consulting with both a tax professional and possibly an immigration attorney to navigate any nuances related to their immigrant status and employment. Good luck with everything!