It's just a separate concept. There is nothing special about reconciling your subsidy to $0 instead of -$10 or +$10.. its similar to your overall tax refund in this regard. This is just a reconcilliation - not a penalty or bonus.Thanks for this ... very helpful. But, why repay the subsidy if all I have to do is make a tIRA contribution (entails moving money from my high yield savings account to Vanguard IRA account) to keep it? I know ... this is a loophole in the system that benefits me but not the government/taxpayers. But, wealthy people certainly have no problem taking advantage of tax loopholes so maybe I should, too.
You could make a yet bigger tIRA contribution (you're not at the limit afaict) and get an even bigger subsidy than was advanced to you. (you would get it as your tax refund).
If you had a HDHP plan you can also get a big MAGI deduction that increases your subsidy by funding your 2025 HSA before April 15 2026.
Statistics: Posted by bh-theweb — Wed Jan 14, 2026 10:06 am — Replies 6 — Views 218