Affordable Care Act (ObamaCare) and tax planning: A very difficult task...

[Money Stoic]

Purchased a private plan (Humana) through the exchange after leaving my long time job to become self employed.

The cost of the premium is based on 2014 estimated income.

However, estimating an income on a new venture is next to impossible.  If you are wrong, you owe back a sliding scale to all of your upfront tax credit at tax time.

This document discusses what your income vs your deductions are as it pertains to the ACA:

http://laborcenter.berkeley.edu/healthcare/MAGI_summary13.pdf

It appears I can deduct the actual cost of the premium I am paying after up front tax credit?  No?

It also appears that I can put business income into a SEP or Simple to reduce my liability. 

I have researched the two, but am still unclear on which one to go with.  Anyone else in this boat and have been able to make that determination?

What is going to be the best way (besides trying NOT to make money) for me to meet my estimated target?

[brewer12345]

Yes, you can deduct the cash cost of premiums that you actually pay if you are self-employed.  Find whatever other legitimate deductions you can take against your income.

We use a solo 401k for a self employed retirement plan.  It is extremely flexible and has relatively high contribution limits.  Since we do not have to choose how much to contribute and do so until April 15th (tax day), the solo 401k is what we will use to ensure that we hit the bullseye on MAGI declared when buying the exchange policy with subsidies.

[Money Stoic]

We use a solo 401k for a self employed retirement plan.  It is extremely flexible and has relatively high contribution limits.  Since we do not have to choose how much to contribute and do so until April 15th (tax day), the solo 401k is what we will use to ensure that we hit the bullseye on MAGI declared when buying the exchange policy with subsidies.

Great.  Do you do it through TD AmeriTrade?  Any good links for solo 401ks you use for research?  I will start the process of finding out how much I can contribute. 

[brewer12345]

We use a solo 401k for a self employed retirement plan.  It is extremely flexible and has relatively high contribution limits.  Since we do not have to choose how much to contribute and do so until April 15th (tax day), the solo 401k is what we will use to ensure that we hit the bullseye on MAGI declared when buying the exchange policy with subsidies.

Great.  Do you do it through TD AmeriTrade?  Any good links for solo 401ks you use for research?  I will start the process of finding out how much I can contribute.

Hmmm, we set ours up like a decade ago and used Fidelity since they were the only ones who would do it at that time without charging fees.  I imagine you would have a lot more choices now.  Fidelity has been very good about answering my questions about this plan, since you get to talk to their dedicated retirement plan people.