Hello everyone one,
I have a quick question about the MAGI
We are a family of 3, myself, my wife and my baby boy, and we live in Florida.
In order to get the health insurance subsidies I must keep my AGI under 85K. Sometime my job ask me to work overtime and I am worried that I might go over $85K and end up paying the subsidies back when I file for 2020.
My wife gave birth this year so I had to do a low deductible plan with high premium. The health insurance agent told me that if make more than $85K I will have to pay back $12k in subsides. He told me to try to keep my AGI under $85K my sending money to my retirement account.
My company set us up with Simple IRA account and at the end of every year I get Form 5498, Please see attached what I got last year.
My question if I feel I am getting close to the $85k limit and I ask my boss to send my paycheck to the simple IRA account to keep me under $85K would that lower my MAGI so I dont pay the $12K back?
I am asking because when I filed my 2019 taxes my MAGI did not lower by the amount I contributed to my simple IRA account in 2019. it actually stayed the same. What I missing here?
