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ACA Income Question
Old 12-06-2014, 07:30 PM   #1
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ACA Income Question

Our daughter is on our ACA plan and I know we have to include her income. She will be graduating from college in May.

If her income puts us over the subsidy limit would an IRA in her name reduce the amount of her income we have to claim?

Thanks for your help!

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Old 12-06-2014, 08:48 PM   #2
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I just went through this with my daughter. I filled out the ACA with 4 family size, but went in to do a life event when DD got a job after getting a professional job. So I now am at family size of 3 (only have 3 exclusions on the 1040). So she will claim herself, and her income is not counted on my ACA calculation. There is some complications about how to do the split calculations. I have studied it, but there is an IRS publication that is not available yet. I may be presuming too much, but I would think it would be logical (x months with 4 get pulled out).

Concerning the IRA, you can reduce her income, but I presume that she will be working a "short year", so I would pay taxes (15%)? and chunk savings into a Roth. But the point concerning her income, if you don't claim her, and she gets new insurance from her new employer, her income doesn't need to be in your " family" from an ACA standpoint.
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