I am trying to find out if my Class-Action Lawsuit Settlement money is considered a COUNTABLE source of Income with regards to CoveredCA Health Insurance subsidies. The only information I could find related to Settlement money is for LOST WAGES or Personal Injury, both of which are NOT the type of settlement I received.
I received a 1099-MISC, Other Income (Box 3) $xx,xxx.00 for a Class-Action Lawsuit Settlement.
Federal Income Tax Withheld (Box 4) $0.00
I know I owe taxes on this Income, but my question is whether this is a COUNTABLE SOURCE of Income for CoveredCA 2020 Health Insurance Premium Assistance Subsidy?
If this Income from a Lawsuit Settlement COUNTS, then I exceed the 400% and have to pay back all the subsidy money.
IF, your MAGI exceeds 400% of the federal poverty level - because you forgot to include the INCOME – when you file your 2020 tax return, you will have to repay ALL of the federal Advance Premium Tax Credits you received during the year.
I noticed that FORM 3849 (Health Insurance Premium Assistance Subsidy) is still be worked on at TurboTax and will be ready on 2/11/2021. So I am Praying that Class-Action Lawsuit Settlements 1099-MISC are not COUNTABLE toward my subsidy money.
