I am early-retired and living off of savings and investment income.
HealthCare.gov offers a tax credit for those making $12,500 to $31,000.
I have subscribed to a healthcare.gov insurance plan and am using half of the advance payments.
The standard IRS tax deduction for a single person is $12,500.
Please check my understanding...
I'm thinking that, assuming my investment portfolio meets or exceeds $12,500 gains, I could sell it at the end of each year to claim the income in order to qualify for the tax credit and not have to pay the penalty for not making enough money.
In addition, the standard deduction would mean that I would not have to pay tax on the income up to $12,500.
Does that make sense and sound like a reasonable plan?
Thanks for your advice.
