I have been on SSDI since December due to cancer and am in the process of having my approx. $10,000 (principle.. more like $14,000 with fees/interest) federal student loans discharged. I am easily insolvent as I don't own anything except clothing and a few assorted used things (no car or house). My question is does declaring insolvency on Form 982 also remove that as income reported to "Obamacare". I receive Medicaid through Arkansas' expanded access option and want to make sure that a 1099C for the forgiven loan would not somehow put me over the amount for eligibility for Medicaid. I couldn't afford a premium. At this time I make $13,044 a year and this year the epanded access limit is $16,105. So basically the insolvent amount would be like a "0" or something smallish in terms of it applying as "income" to figure my Obamacare premium.
In sum would a discharged student loan, using the insolvency option from Form 982 to show me totally or nearly insolvent, affect my reported income for Obamacare? Hope that makes sense.
Thanks so much!
Wed Apr 08, 2015 6:44 pm
Chris1111 New Member
Cash: $ 0.70
Joined: 08 Apr 2015
(I should note that I've posted this same message at several financial forums, but it is not spam. I really need some advice on this and it's been a challenge to get a solid answer so I'm casting a few nets and maybe somebody will have an answer. Thanks!)