No, a non-taxable rollover is not considered income for the calculation of the premium tax credit. To determine the modified AGI, it is your AGI on Form 1040 Line 11 plus any non-taxable interest reported on Line 2a of Form 1040, the non-taxable portion of your social security and any housing allowances from the foreign earned income exclusion. To preview your 1040:
- Open or continue your return.
- Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
- With the Tax Tools menu open, you can then view your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu
- Scroll down until you see Form 1040
If your premium tax credit dropped significantly after entering a rollover IRA or 401(k), you may want to check to make sure that it is indeed not being taxed. The taxable amount, if any, would appear on Line 4b or Line 5b.
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