Join Early Retirement Today
Thread Tools Search this Thread Display Modes
ACA Income Question
Old 12-06-2014, 08:30 PM   #1
Recycles dryer sheets
Join Date: Mar 2013
Posts: 104
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!

gbstack is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-06-2014, 09:48 PM   #2
Thinks s/he gets paid by the post
sengsational's Avatar
Join Date: Oct 2010
Posts: 4,657
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.
sengsational is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
ACA income question. gbstack Health and Early Retirement 7 09-23-2014 08:47 AM
Dumb question about ACA vs Income siamond Health and Early Retirement 11 07-19-2013 10:01 PM
Report: ACA's Effect on Insurance Premiums Varies by Income Level wanaberetiree Health and Early Retirement 56 03-30-2013 10:32 AM
Healthcare ACA subsidies appear to depend on multi-year income pixelville FIRE and Money 21 03-14-2013 10:01 PM

» Quick Links

All times are GMT -6. The time now is 08:35 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.