So I was in the weeds on Reddit and stumbled across a couple posts that peaked my curiosity. One said that the best possible AGI for a wife and two kids was $45,000. The poster went onto say how you'd basically pay zero taxes and have almost 100% paid for healthcare.
This caused me to go to the HR Block Tax Calculator. Sure enough I plugged in one income of $45,000 for a family of four and came to find that this would result in a refund of approximately $5,300. In other words, your federal income tax rate would be significantly negative.
Then I was checking the ACA website for available plans. It looks like I can get a silver ACA plan from United Health (which is the insurance company I have at work) for something like $250/month, which by and large is nothing compared to 100% being on the private market.
I am sure I am missing other available subsidies and tax credits.
It seems to me like this actually wouldn't be that bad of a way to live. With the income tax refund, this is $4,000/month, and I think we could pull that off if we paid off all debts first so I could actually live in this income range. I see no reason not to take advantage of our progressive tax system.
To be clear, wife and I are both 36 and we have $525,000 in invested assets. We could pretty easily make $45,000/year with minimal work. Good years would just be lumped back into savings.
Anybody doing something similar?
This caused me to go to the HR Block Tax Calculator. Sure enough I plugged in one income of $45,000 for a family of four and came to find that this would result in a refund of approximately $5,300. In other words, your federal income tax rate would be significantly negative.
Then I was checking the ACA website for available plans. It looks like I can get a silver ACA plan from United Health (which is the insurance company I have at work) for something like $250/month, which by and large is nothing compared to 100% being on the private market.
I am sure I am missing other available subsidies and tax credits.
It seems to me like this actually wouldn't be that bad of a way to live. With the income tax refund, this is $4,000/month, and I think we could pull that off if we paid off all debts first so I could actually live in this income range. I see no reason not to take advantage of our progressive tax system.
To be clear, wife and I are both 36 and we have $525,000 in invested assets. We could pretty easily make $45,000/year with minimal work. Good years would just be lumped back into savings.
Anybody doing something similar?
Statistics: Posted by CoastLawyer2030 — Mon Aug 26, 2024 11:53 am — Replies 5 — Views 303
