Income limit on inflation reduction act

[effigy98]

This is a big blocker for most people that live in my area. Almost everyone is over the cap due to cost of living. The cap should be area independent but it is not. Other than quit my job for a year or get lucky with a layoff or something, does anyone have practical ways to get under this cap? There are so many energy saving "updates" that would be nice to haves, but are not practical without the credits.

[seattlecyclone]

Which cap are you referring to? I thought I read some of the incentives (particularly the big ones for low/middle income people to electrify their HVAC) were based on local median income.

[NWOutlier]

get rid of w2 income; own a business.

[bacchi]

Has anyone seen any guidance on what income is used for the rebates? AGA? Some kind of MAGA? Taxable income? There are a lot of articles written about the IRA rebates, and they all refer to the median HHI, but what income?

[catccc]

This site seems to have some helpful information:
https://www.rewiringamerica.org/app/ira-calculator

At this site, when you click on the question mark income for more info, it says: "Enter your gross income (income before taxes). Include wages and salary plus other forms of income, including pensions, interest, dividends, and rental income. If you are married and file jointly, include your spouse's income"

If you want to see more info on area median income, this might be a good place to start: https://ami-lookup-tool.fanniemae.com/amilookuptool/  IDK if this is exactly what is used, but the rewiring america site uses the term "area median income."

[bacchi]

This site seems to have some helpful information:
https://www.rewiringamerica.org/app/ira-calculator

At this site, when you click on the question mark income for more info, it says: "Enter your gross income (income before taxes). Include wages and salary plus other forms of income, including pensions, interest, dividends, and rental income. If you are married and file jointly, include your spouse's income"

If you want to see more info on area median income, this might be a good place to start: https://ami-lookup-tool.fanniemae.com/amilookuptool/  IDK if this is exactly what is used, but the rewiring america site uses the term "area median income."

Nice. That site is a lot clearer than the other sites I've visited.

Gross income would mean Line 9 on the 1040? That disadvantages the self-employed because the deductible SE tax ends up on line 10. I'm hoping there will be another MAGI, taking into account HSA contributions, because I might've screwed myself by doing too much Roth conversion.