I have significant realized long term carryover losses (say $100k). Each year, I only need $30k cash for my expenses - including ACA premiums. So, next year my plan is to sell $30k in stocks I hold (with the long term cost basis of $10k).
If so, in 2023, since my long term gain ($20k) will be LOWER than the carryover amount ($100k), my MAGI will be $0. That will force me to go for Medicaid and I can't use ACA.
One easy answer is that I should sell stocks of worth more than $100k + ACA qualifying minimum amount in 2023. However, stock market is down. So, I do not want to such a large chunk of stocks in 2023.
Another easy answer is that I should earn income in 2023 and qualify for ACA. Unfortunately, I am not able to find a job that is meeting my needs due to my personal situation.
Anyone else is in this situation? IF so, how are you solving this issue?
A slightly complicated but useful solution in this situation, is to use the carryover loss only partially. So, say my state's Medicaid limit is $15k, and if I can only use $4k of my carryover losses in 2023, then for 2023 I can show my MAGI as 20k - 4k = 16k and escape Medicaid (15+k), qualify for ACA, and carryover $96k for the next year.
I did a trial run for this in TurboTax 2021, but I couldn't figure out how to apply capital loss carryover but only partially. I reviewed the paper forms. Even there the instructions don't seem to allow partial application of carryover losses. In other words, the form and TurboTax both seem to require filer to extinguish the losses as early as possible, leaving no option.
Is my understanding correct? Or am I missing some critical step here?
