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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3800
Experience:  20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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I received PPD award letter - I have an option to choose

Customer Question

I received PPD award letter - I have an option to choose lump sum or monthly $140 until age 70. If I choose lump sum how does it effect my tax return ( is it taxable income)? Is this lump sum part of my income for health insurance plan trough exchange? Thank you
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: I am buying my health insurance using Obamacare, before this lump sum my income was low to qualify for credit. am I going to loose this credit? Thank you
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Income January to April $9500, April to June short term disability $ 3500 . Long term disability is in review. No other income. Since July I purchased Healthplan - Obama care , monthly payment $ 100 - credit is $400/monthly. I have to decide on Tuesday Lump sum of $20000for PPD or 140$ monthly.
Expert:  Barbara replied 1 year ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

The amount of your Permanent Partial Disability award is not considered taxable income whether you choose a lump sum or a monthly payment amount.

The amount of your Permanent Partial Disability award will not be considered as income for purposes of health insurance through the Marketplace (Obamacare).

Please let me know if I can assist you further.

Thank you and best regards,