Can You Increase Income After the Tax Year to Qualify for ACA Subsidies?

Many people rely on subsidies from the Affordable Care Act (ACA) to make health insurance more affordable. However, qualifying for these subsidies can be tricky, especially if your income is low.

ACA Income Limits

To qualify for ACA subsidies, your income must fall within certain limits. For 2023, the income limit for a single person is $53,000. If your income exceeds this limit, you will not be eligible for subsidies.

Can You Increase Income After the Tax Year?

Unfortunately, there are no legal ways to increase your income after the tax year for purposes of qualifying for ACA subsidies. Once the tax year is over, your income is set.

What Can You Do?

If you find yourself short of the income limit, there are a few things you can do:

File an amended tax return: You may be able to file an amended tax return to correct any errors in your original return. If you made a mistake that resulted in your income being reported incorrectly, you may be able to get your income increased.
Contact your health insurance company: Explain your situation to your health insurance company and see if there are any options available to you. They may be able to help you find a more affordable plan or provide you with financial assistance.
Consider Medicaid: If your income is very low, you may be eligible for Medicaid, a government program that provides health insurance to low-income individuals.

Case Study: Roth Conversion

In the post, the individual was trying to use a Roth conversion ladder to increase their income. A Roth conversion ladder is a strategy where you convert money from a traditional IRA to a Roth IRA. This can increase your taxable income and potentially make you eligible for ACA subsidies. However, as the poster found out, the IRS no longer allows Roth conversions to be credited to the previous year.

Conclusion

Qualifying for ACA subsidies can be challenging, especially if your income is low. However, there are some things you can do to try to increase your income or find other options for health insurance. If you are struggling to afford health insurance, it is important to contact your health insurance company or seek professional help from a licensed insurance agent. They can help you find the most affordable plan and explore all of your options.