Options to bring down AGI?

[sher5625]

I received Health care subsidy for 2018 as I thought it would be my Taxable Income that would be used to determine eligibility for the health care subsidy. I just found out that it is my AGI that would be used to determine eligibility. So I'm about $20K above the AGI required to qualify.

What are my options to reduce my AGI by $20K by April 15th?

Thanks for any help provided!

[MargaretL · Accepted solution]

Please look at this Schedule 1. Lines 23-35 reduce AGI. You won't be able to reduce your AGI by 20K, unfortunately. However, see if the IRA contributions will help a little (if you qualify to make a contribution).

[sher5625]

Thanks!.

If I make charity donation before April 15th, 2019, Can I deduct that on my 2018 Tax Return? Or only charity doantions made in 2018 can be deducted on 2018 Tax Return?

[MargaretL]

No, unfortunately, charitable contributions will not lower your AGI.  First, because the charitable contributions lower taxable income and have nothing to do with the AGI. If you look at the Schedule 1 link I sent you, they are not listed there. And only items listed on lines 23-35 will lower your AGI. Secondly, the contributions must be made in 2018 in order to reduce your taxable income for the 2018 tax year, on the 2018 tax return.