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Level 1
December 7, 2019
Solved

What to do when having to pay premium tax back?

  • December 7, 2019
  • 1 reply
  • 16 views

What do you do when you are self-employed and your income is too high to qualify for the premium tax credit, but adding the premium credit pay back to the self-employed health insurance deduction decreases your income to where you are not required to pay the credit back?

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Best answer by TaxGuyBill

First, you are letting the program do the iterative calculation, right?

Second, test out if contributing to a Traditional IRA will get away from the weird 400% zone.

Third, try doing the calculation manually (which is gruesome), and use 'any reasonable method' to calculate the numbers.

1 reply

Level 15
December 7, 2019

First, you are letting the program do the iterative calculation, right?

Second, test out if contributing to a Traditional IRA will get away from the weird 400% zone.

Third, try doing the calculation manually (which is gruesome), and use 'any reasonable method' to calculate the numbers.