annyongsoup t1_je8ilyr wrote on March 30, 2023 at 4:35 AM

Reply to comment by annyongsoup in My husband and I owe 22k in taxes but we only made a combine total of 75k by one-eye-owl

Also, I know having the cash on hand to put into the 2022 traditional IRA can be difficult. Make sure you find a good CPA first

annyongsoup t1_je8hfbv wrote on March 30, 2023 at 4:23 AM

Reply to My husband and I owe 22k in taxes but we only made a combine total of 75k by one-eye-owl

If you haven’t contributed to a traditional IRA, set up the account at a brokerage and contribute the maximum you can to lower the AGI to below 400% poverty line. This allows you to only pay the cap amount ($2800) for repaying the subsidy you received.

This is a method I used to help my parents in a similar situation. You will have to pay tax when you withdraw from traditional IRA but at least you get the money back one day. If you are not comfortable with investing, just leave the money in there and don’t touch it.

Like others have said, shop your CPA around and ask if they are an enrolled agent. Then tell the CPA you need methods to lower your AGI to below the threshold and they can give you tools to do so based on your individual situation. Don’t panic, you got this! No way you pay this much back. I hope your health get better!