11/17/2015
Are you purchasing health insurance on your state's exchange and receiving a subsidy? Unless your estimated income when applying for health insurance is exactly equal to your actual income for the year, you will be required to repay/entitled to an additional credit when you file your 2015 tax return. Now is the time to consider ways to decrease your adjusted gross income in order to receive an additional Premium Tax Credit upon filing your tax return. An easy way to do this is to make a contribution to an IRA account. For example, a family of four with adjusted gross income of $96,000 has a Premium Tax Credit of $0 but that same family with adjusted gross income of $95,000 is entitled to a $5,374 Premium Tax Credit. In other words, a $1,000 IRA contribution results in a $5,374 tax credit. Now that's a good return on investment!
