Has anyone successfully used an IRA deduction to lower their taxable income while on Medi-Cal?
My 12 y/o daughter is currently covered by Medi-Cal in California. I work as a food server so my income fluctuates a bit year-to-year, and I'm realizing my income this year is going to be a little higher than the 266% FPL. I already changed my contribution to 15% for my 401K and have my own health insurance premiums taken out of my checks. I'm considering opening an IRA to contribute the difference. I am also able to take the full deduction. From everything I've read in theory it should work, I can use my tax return as proof of income and my AGI will be under the income limit. However, ALL my savings (emergency fund) would then be tied up in the IRA and don't want to risk that unless it works.
*Just FYI - I have been working like a dog since last summer when I added up my debt (car loan plus credit cards) and realized it was over $16,000.00. Today I owe $3000.00 (0% interest until 11/2019). All the extra money I earned went to pay off debt.
Submitted September 01, 2018 at 11:42AM by rolledtacos74 https://ift.tt/2oseFqp
