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I became totally disabled from a stroke in October of 2014.

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I became totally disabled...
I became totally disabled from a stroke in October of 2014. SSI income $1689...at 62 years of age. We enrolled in ACA based upon the $1689. My wife and I decided to leave GA and move to TN to be closer to family. We netted $20K from the sale of our home. Unfortunately, we could not qualify to finance another house because of our income...the $1689. We elected to draw down my 401K...$54K and we purchased a home for $70K. Now its taxtime and because of the draw down we have to repay some $9200 for the ACA and our 2016 premium is also based upon the high income...it will take almost half of our income. Is there any relief avaiable? If we don't have to count the 401K as income for ACA...we'd recv a refund since we had the tax taken for the normal distribution.
Submitted: 1 year ago.Category: Tax
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Answered in 47 minutes by:
3/23/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,214
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello

Sorry but no one wants to give you the bad news. Getting a negative rating for advising on the correct method (but unfortunate tax situation) is what happens to us.

Include most IRA and 401k withdrawals in your Modified Adjusted Gross Income when you are looking at ACA.

The bad news is that there is no relief for you. The distribution you made form your 401k increases your income and you have no relief.

I wish I could tell you differently. I really do but I could not leave you thinking no one wanted to answer your question.

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Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,214
16,214 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

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