I have made $7200 working for a temp service this year, then I was hired in straight into the company and hope to gross about $3700 for the previous last two weeks and the remainder of the year. I have made $438 on a side gig. I am needing a gross of $12800 to get my rebates on ACA insurance. So far earned I have about 7200 + 3700 + 438 = 11338.

I also have invenstment dividends so far of $284 for the year and unrealized capital gains of $1300. So this gives 11338 + 1300 + 284 = 12922 as my gross income am I right? Then I would be able to get almost $5000 back in ACA premiums.

To make this wind up more surely in my favor I was thinking about using my $54000 life savings to get a mutual fund with low volatility and high dividend payout during the end of the year.

  • 1
    Unrealized capital gains don't count as income. Unless you're suggesting you'll realize them before the end of the year?
    – Craig W
    Nov 19 at 22:59
  • Yeah I'm thinking of selling
    – Grant314
    Nov 19 at 23:04
  • Note you can sell to realize a gain and immediately buy back if you still want the investment; the wash-sale deferral only applies to losses not gains. Was the 'temp service' as an employee or contractor? Half of any SE tax (about 7.5% of SE income) is subtracted before AGI as used for PTC. Any chance of the (new) employer paying a Christmas bonus? Or giving you some taxable (hence reportable) fringe benefit(s)? Good luck. Nov 21 at 1:33

You are cutting it so close to the minimum AGI, that you might benefit from filling out the draft tax forms for 2021. This way you will have the most accurate estimate of your 2021 AGI, which you can compare against the ACA minimum 'modified AGI'.

These tax forms are the draft version, not the final version, but they should be more accurate for 2021 than the 2020 forms would be:

Form 8962 (draft form for 2021)

  • What I mean by the last paragraph, is that I'm pretty sure I can "catch" dividends at the end of the year with a mutual fund. I see some that distribute 3.5pct and others at 2pct.
    – Grant314
    Nov 21 at 9:14
  • Found it: I'm considering dividend capture stratgey to get me over the top. investopedia.com/terms/d/dividend-capture.asp
    – Grant314
    Nov 21 at 9:37
  • @Grant314 Yes, it's also called "buying the dividend" and usually considered a bad move because it adds to your taxable income without you really gaining anything, but in this case that's exactly what you want.
    – Craig W
    Nov 21 at 18:04

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