What to do when having to pay premium tax back?

[DD]

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?

[TaxGuyBill · Accepted solution]

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.