topic My income is social security and dividends. The ObamaCare subsidy needs to be repaid (salary $4000 too much). Can I make an IRA contribution to reduce income. in Retirement tax questions

My income is social security and dividends. The ObamaCare subsidy needs to be repaid (salary $4000 too much). Can I make an IRA contribution to reduce income.

wxrbumo — Thu, 06 Jun 2019 15:25:49 GMT

I am retired and have social security and dividernds for income (no W2 or taxable wages). I withdrew more than I should have from my IRA last year and the health care subsidy on my tax return needs to be repaid. I want to know if I can make a contribution before April taxes (in 2018) to reduce my income.

No, you can only make an IRA contribution if you have "ea...

KittyM — Thu, 06 Jun 2019 15:25:51 GMT

No, you can only make an IRA contribution if you have "earned income" from wages or self-employment.

Further, Obamacare penalties are based on Modified AGI, s...

Rainman12 — Thu, 06 Jun 2019 15:25:51 GMT

Further, Obamacare penalties are based on Modified AGI, so contribution (even if legal) won't help ...

We got snagged on Obamacare premium paybacks the same way...

DaveNTx — Thu, 06 Jun 2019 15:25:53 GMT

We got snagged on Obamacare premium paybacks the same way ... I took a distribution from my IRA such that I would have little or no tax to pay but, the premium subsidy was then voided and the premium payback amount is added to my taxable income. Now, we've got a big tax bill and - just to rub salt into the wound - a tax penalty for not withholding enough from the IRA distribution. The whole thing is pretty insidious.