I don't live in California, but part of my family does and they're complaining about losing $15k in health insurance subsidies because they unexpectedly received a larger-than-expected dividend check that pushed them over 400% FPL income limit.
And it looks like Covered California uses MAGI for income determination, which means that many of the usual means of reducing taxable income, like an IRA contribution, won't work. Does anyone else have any bright ideas for how to reduce MAGI for purposes of qualifying for subsidized health insurance?
Ideas thus far:
1. Make and HSA contribution, if they have one available to them.
2. Incur moving expenses in the next five days, in preparation for an upcoming move, and list them on form 3903.
3. Become self-employed in the next few days, incur start-up expenses, and declare a deductible loss for the year.
Are any of those viable? Any other ideas?