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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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In WA state, if I take a lump sum from an untaxed retirement

Customer Question

In WA state, if I take a lump sum from an untaxed retirement fund to purchase a car (I am retired and 62) will it count as a monthly portion or annual portion as income as it pertains to a healthcare exchange premium. Will I lose credits for one month or 12 months or remaining months after the lump sum.
Submitted: 11 months ago.
Category: Tax
Expert:  emc011075 replied 11 months ago.

Hi. My name is ***** ***** I will be happy to help you.

The premium and credit eligibility is based on total annual income. You will not necessary loose the credit, but you will have to include the distribution when you estimate your income so the credit may be lower, depending on the amount of distribution. Since you will not be taking the distribution today, it will count as income next year.