If possible you might also look at taking as many long term capital gains as you can in the 0% federal long term capital gains tax bracket.
If you are getting an affordable care act healthcare subsidy keep in mind that if you figure out some way to have additional wage income that the income will reduce the amount of the ACA subsidy. My understanding is that the ACA cliff is back in 2026 so getting more income than the cliff amount could cost you a lot.
The calculation is complicated and depends on your income level. The rules have changed since I was dealing with this before I started Medicare but back then I was looking at around a 9% reduction on my ACA subsidy for every dollar of additional income. Basically if I had $100 more in income then my subsidy was reduced by around $9 dollars.
If you are getting an affordable care act healthcare subsidy keep in mind that if you figure out some way to have additional wage income that the income will reduce the amount of the ACA subsidy. My understanding is that the ACA cliff is back in 2026 so getting more income than the cliff amount could cost you a lot.
The calculation is complicated and depends on your income level. The rules have changed since I was dealing with this before I started Medicare but back then I was looking at around a 9% reduction on my ACA subsidy for every dollar of additional income. Basically if I had $100 more in income then my subsidy was reduced by around $9 dollars.
Statistics: Posted by Watty — Mon Jan 26, 2026 11:53 am — Replies 23 — Views 1499