Year-end tax matters and health insurance

Key Takeaways

• Track dividend and interest income throughout the year (don't wait for 1099 forms in January) because these directly affect your tax bracket and can trigger higher Medicare Part B/D premiums or ACA costs via IRMAA or advanced premium tax credits
• Structure your investment portfolio to minimize taxable returns where possible—prioritize tax-free returns over taxable ones when you have flexibility, since health insurance premium increases are often larger and more predictable than market gains
• Use tax-loss harvesting in brokerage accounts to offset realized capital gains before year-end, reducing your overall taxable income and limiting unintended increases to Medicare or ACA premiums
• Consult your tax accountant before year-end to calculate the potential impact of current distributions on your total taxable income and projected health insurance costs for next year