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East of Broken Bow | Yes, Obamacare is a convoluted system. Make a blind guess how much money you will make next year, and if you guess too low, you immediately have a tax bill due. Guess too high, and maybe 6 or 8 months later, you get a refund of what you overpaid.
Anyway, the MSA and IRA contributions have already been mentioned, but one thing I see hasn't.
College funds.
Now, the qualifications are pretty complex, I won't even begin to pretend I know what it takes to qualify for the tax deduction for that, but I do know some people have been able to set up a prepaid college fund in such a way, to be able to expense out (some or maybe even all) money put aside for a college fund for children or grandchildren. I have zero idea how it works, or what you have to do to qualify, but I do know of a few people who have done that, for the purpose of tax planning/Obamacare. They figure the kids are going to college anyway, so why not put something aside, and get a deduction on it. The only thing I have really gathered from talking to those people, is that there are lots of hoops to jump through, both in how you set up the account, and how they use the account. Also, if the kid doesn't go to college, I have no idea what happens then. | |
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Health Insurance
