Throw a Dart
Predict Future Income - Not the Past
If you are applying for subsidies to lower your premiums in the year 2024, simply Predict/Estimate your total house hold Gross income for the year 2024.
Do NOT look at previous taxes to predict future income unless your past income reflects your predicted future income in 2024.
Explain your Prediction/Estimate
Example - If Predicting a $88,000 total household gross income (MAGI) for 2024. Tell me how you arrived at that number:
Bob - $3,000 month Salary Job
Bob - $10,000 annual 1099 Self Employment
Sally - $1,500 month Social Security
Sally - $2,000 month Investment income.
Total = $88,000 Predicted/Estimated Total Gross Income
When you file your 2024 1040, the IRS will compare what you Predicted for your total house hold gross income (MAGI) , to what you filed on your taxes.
If you Predicted too low and received more subsidies than you were entitled to, they will recover the difference allowed.
If you Predicted too high and received less subsidies than you were entitled to,
they will give you an instant tax credit.
Simply do your best to Predict/Estimate your income as accurately as possible. We can always make adjustments throughout the year if things change.