I planned my 2017 MAGI income to qualify for ACA for the last half of 2017 (COBRA for the 1st 5 months).
While doing my 2017 taxes I found out, since I was on a high deductible COBRA plan for the first half of 2017, I'm eligible to contribute to an HSA for those COBRA months.
If I contribute that amount to the HSA, my 2017 will now be below the ACA MAGI minimums for 2017. If I don't contribute to the HSA, I have to pay ~$300 in fed income taxes.
Just to complicate things, while the wide variety of info sites say HSA contributions are subtracted to determine MAGA income, the official ACA site says NOT to include the HSA deductions:
https://www.healthcare.gov/reporting-deductions/
but I'm sure that info will magically disappear should I need to rely on it in an audit.
The question is: Has anybody had their income fall short of ACA minimums at year end (in this case only on paper) and jeopardized their subsidies for that year?
While doing my 2017 taxes I found out, since I was on a high deductible COBRA plan for the first half of 2017, I'm eligible to contribute to an HSA for those COBRA months.
If I contribute that amount to the HSA, my 2017 will now be below the ACA MAGI minimums for 2017. If I don't contribute to the HSA, I have to pay ~$300 in fed income taxes.
Just to complicate things, while the wide variety of info sites say HSA contributions are subtracted to determine MAGA income, the official ACA site says NOT to include the HSA deductions:
https://www.healthcare.gov/reporting-deductions/
but I'm sure that info will magically disappear should I need to rely on it in an audit.
The question is: Has anybody had their income fall short of ACA minimums at year end (in this case only on paper) and jeopardized their subsidies for that year?