dmertz
Level 15

Deductions & credits

You'll likely have to limit your self-employed health insurance deduction to the amount that just keeps your MAGI just above the threshold where the APTC repayment would disappear if MAGI was reduced further.  To do this you would have to unmark the box in the ACA section that indicates that you are self-employed and bought a Marketplace plan, then enter an amount in the Self-Employed Health Insurance Premiums box for other business expenses that keeps your MAGI just above the threshold.

 

If you timely requested a filing extension and have not already maximized your self-employed retirement contribution, an alternative might be to make a SEP-IRA or 401(k) contribution that will bring your MAGI under the threshold so that you would not have to repay the APTC.  (If making a self-employed retirement plan would require establishing an new plan, only an employer contribution would be permitted.  For 2023 or later the SECURE 2.0 Act makes a 401(k) employee contribution possible, but not for 2022.)

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