Small changes in your income can make a big difference in your premium tax credit. If your income is just $1 over the limit, you are not eligible for a premium tax credit. The good news is you might be able to qualify.
To lower your income you might be able to:
- Contribute to a traditional individual retirement account (IRA)
- Contribute to a Health Savings Account (HSA)
- Contribute to an employer-sponsored retirement account, for example a 401(k)
You can make IRA and HSA contributions up to the tax filing deadline. You can make 401(k) contributions up to December 31.
Get personal advice before you act! The IRS has detailed rules. Talk to a tax professional to make sure you qualify to lower your income in this way.