Tax law changes

Hi,

You said "I'm a school teacher. Married with one child. I make 43,000 a year. I don't own a business. My wife has health insurance through healthcare marketplace. How will the new inflation reduction act affect my taxes?"

In response, I want to point you to this article that outlines the Inflation Reduction Act, as you may spot something relevant to you that I don't know about.  The most likely areas to impact you in the future are:

• The extension of the availability of the ACA Premium Tax Credit to people with households income above 400% of the Federal Poverty Level (FPL).  However, based upon the limited facts in this email, you may have already qualified. Here is information on the FPL for 2022.
• Another potential area of benefit is in energy efficient tax benefits. Those are discussed in the article linked above. 
• You don't mention your ages, but there is some possibility you may benefit from the cap on prescription drug costs for Medicare beneficiaries and we may all benefit in the future from the ability of Medicare to negotiate prescription drug costs.
• We may all benefit from the Corporate tax changes too, either in reduced deficits or expanded funds available.

All that said, in your particular situation, you may not see any clear direct benefit today from these changes. If you have more questions after you look at the article, don't hesitate to come back.

Please cheer below if this response is helpful.  

Best,

Karen