The more I post, the more confused I get—definitely not your fault, it’s just me trying to make sense of all this.I guess if your APTC was based on a 60k income and you are only going up to 62k, the repayment can only be 2000*.085 or $170, not the 5k or 1.5k I thought. (I was thinking you had started with a super low estimate of 40k MAGI or something.)
You can try following your last year's form 8962 and putting in estimates for this year's numbers to double-check.
This means you might not need to worry about getting under 400% FPL that much. Also, I don't think you should go without insurance for the rest of the year - the repayment is calculated on a monthly basis anyway.
I originally estimated my MAGI at $60,000, but if I don’t take time off at the end of the year, it could end up being around $63,000. This includes $1,700 in interest from a certificate of deposit, which I’ve now closed to avoid increasing my MAGI further. Last year, I underestimated my MAGI and went over the 400% FPL, which led to paying $974 in federal taxes. Based on that, I’m thinking I won’t owe much more this year. Do you think that’s correct?
If that’s the case, would it be okay to reinvest my savings in a certificate of deposit? It could yield around $1,200 in the remaining four months, which would further increase my MAGI.
Additionally, do you think maxing out my Roth IRA contribution at $8,000 (the limit for my age) would be beneficial in my situation?
I apologize for the flood of questions that might seem obvious to an expert, but I’m really struggling to understand all of this. I just want to avoid any unpleasant surprises when filing my taxes.
Regarding canceling health insurance, I’m seriously considering it because I only use it once a year for a physical and some lab tests. I could manage these in other ways without spending so much, and it would relieve the stress of staying within the FPL limits.
Thank you for your patience and kindness.
Statistics: Posted by asr63 — Fri Aug 16, 2024 8:25 pm — Replies 13 — Views 1003