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The Affordable Care Act (ACA) premium tax credit is a refundable credit designed to help eligible individuals and families afford health insurance. The credit is reconciled through a process on your annual federal income tax return, meaning your final eligibility and the amount of the credit are determined when you file your taxes. The calculation of the premium tax credit depends on several factors, including your household size, income, and the cost of the benchmark health plan available in your area. If any of these factors change during the year, such as an increase in income, it is important to report those changes to the Health Insurance Marketplace promptly. Failure to report changes can result in significant tax liability at the end of the year, as you may be required to repay excess credit amounts received in advance. Regarding your specific question, TurboTax does not have the ability to track your taxable activities or notify you of changes related to the premium tax credit throughout the year. However, the TurboTax software provides detailed explanations of how the credit works and its potential tax implications during filing season. For more information, you can read this additional article about the premium tax credit and its tax effects: Health Care and Your Taxes: What's the Connection?   @Ray0200  Thanks for the question! **Say “Thanks” by clicking the thumb icon in the post **Mark the post that answers your questions by clicking on “Mark as Best Answer”  

We do not have any other information from you.   You have not told us what other income you are receiving in addition to the SS.   Without any personal information like email or SSN, provide some details about the other income you have.

That's entirely up to you, and you don't really give enough information about yourself to make very many helpful comments.   Certainly, if you need the money to live, you might need to stop contributing.  If you are not retired, have extra money, and are choosing between a regular savings account and a Roth IRA, you might stick with the Roth, because you can withdraw the contributions tax-free if needed (just like a savings account) and only pay tax if you withdraw earnings.  If you are retired and thinking about estate planning, your heirs would not owe tax whether they inherited cash or a Roth IRA.  But, if you need long term medical care, Medicaid can require you turn over a Roth IRA to them before they will cover your care, but they will not require you turn over a traditional IRA (as long as you turn over the RMD each year). 

The $6,000 senior deduction beginning with tax year 2025 is actually a temporary personal exemption for individuals who are 65 years or older (subject to income limitations and identification requirements).   The personal exemption is in addition to the standard deduction for 2025. For a single filer over the age of 65, the standard deduction is added to the over-65 deduction and the temporary bonus deduction.    The full amount for filing single (and not blind) would be as follows: Standard Deduction: $15, 750 Extra Deduction for 65 and older: $2,000 Temporary senior exemption: $6,000 For a total deduction of $23,750   The full amount for filing jointly (and not blind) would be as follows: Standard Deduction: $31,500 Extra Deduction for 65 and older: $3,200 Temporary senior exemption: $12,000 For a total deduction of $46,700   You need to consider your total income since the temporary senior exemption is limited by Adjusted Gross Income. The senior exemption of $6,000 shall be reduced (but not below zero) by 6% of the taxpayer’s modified adjusted gross income (MAGI) that exceeds $75,000 ($150,000 in the case of a joint return).   The standard deduction mentioned above will be indexed for inflation after 2025.   Add the amount you plan to withdraw from your traditional IRA to your other sources of income to produce total income. The enhanced standard deductions mentioned above (depending on your filing status) will be subtracted from your total income to produce your taxable income.   You can use this link to estimate your tax liability based on your situation and the tax brackets listed in the link: What are the 2025 tax brackets and rates (for filing federal tax returns in 2026)? 

The way to figure your tax liability on your traditional IRA distribution would be to figure out what your marginal income tax rate would likely be each year. You can use our Tax Calculator here. Once you fill it out, it will show you a federal income tax bracket.   Let's say that you fill out the form and it returns a result of 22% in the tax bracket area. You take out $10k from your traditional IRA, and have 22% withheld for federal income taxes, which is $2200. That's the calculation. If you also have a state income tax on retirement distributions, you'd want to consider a state withholding amount as well (the amount to withhold depends on your state's income tax rate(s)).   It is wise of you to consider working with your income over the next four years to maximize the senior deduction, but I want to clarify that taking an IRA distribution now does not maximize the senior deduction for you, given that you are 67 now. What it possibly would do is maximize it in the future, if doing so would then reduce your required minimum distribution to where it would put you below the $75k single/ $150k married MAGI threshold to take the full senior deduction. And that scenario would only apply if the senior tax deduction was extended past year 2028.

The conversion from a traditional IRA to a Roth IRA depends on the nature of the dollars you used to fund the traditional IRA. If you used pre-tax dollars to fund the traditional IRA, you cannot avoid paying ordinary income taxes on that amount. The amount you convert will be considered taxable income in the year of conversion. You can avoid the 10% early withdrawal penalty if those funds remain in the Roth account for five years and until you are past 59 ½ years of age. If you made nondeductible contributions to the traditional IRA (i.e. paid from out of pocket money rather than being withheld from your paycheck) you may not have to pay taxes on the conversion. However, any earnings on the contributions at the time of conversion will be treated as taxable income.

The growth in the 529 is still tax-free when withdrawn if used for qualifying education expenses, whereas the daughter (or grandchild, if you use a UGTMA) will probably pay 15% long term capital gains when they cash out, and may also pay yearly tax on any dividends.

Our tax system is "Pay As You Go" and not wait until the tax time.  If you have a balance due more than $1,000 you may be assessed an Estimate Tax Penalty.   If you owe  more than $1,000, there is a Safe harbor exception. The "safe harbor" exception protects you from estimated tax penalty if you meet one of the following two conditions: 90% of current year's tax: If you have paid at least 90% of the total tax you will owe for the current tax year. 100% of the previous year's tax: If you have paid 100% of the tax shown on your previous year's return (110% if your Adjusted Gross Income was more than $150,000 ($75,000 if married and filing separately)) Waiver due to unusual circumstances Casualty, disaster, or unusual event Retirement on disability

The IRS calculates your required minimum distribution (RMD) by dividing your total account balance by a life expectancy factor. This factor is determined by your age, your beneficiaries' life expectancies, and your own life expectancy. Since your life expectancy factor is updated annually, the amount you must withdraw each year will also change.  Please note you can combine IRA account values to calculate RMD but if you have multiple 401k accounts, each much be calculated separately.   IRS pub 590 -B is more info. if you would like to calculate RMD. Please scroll down at the very end of the page to see IRS worksheet to calculate RMD amount.  https://www.irs.gov/publications/p590b#en_US_2024_publink100090310   Most of the time, brokers are able to tell you the amount of RMD.   Thanks for participating in TurboTax's Ask the Expert event today. I hope this information was helpful! **Please cheer or say thanks by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer" Regards, TurboTax Expert

Hello user ccgc999,   In addition to above answer.    Most major financial websites (like the ones mentioned in previous answers) have RMD calculators where you enter your age and the prior year-end balance to get the RMD amount.    

Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.     What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2021 it was  $18,960.  For 2022 it was  $19,560  —  for 2023 $21,240)  For 2024, $22,320.  For 2025 it will be $23,400   After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.  If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.   To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2024 Form 1040   https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable   You need to file a federal return if half your Social Security plus your other income is   Single or Head of Household      $25,000 Married Filing Jointly                  $32,000 Married Filing Separately            $0   Some additional information:  There are 9 states that tax Social Security—Colorado, Connecticut,, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont  and West Virginia These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.         IF YOU WANT TO HAVE TAX WITHHELD FROM YOUR SOCIAL SECURITY BENEFITS   https://www.ssa.gov/manage-benefits/request-withhold-taxes https://www.irs.gov/forms-pubs/about-form-w-4-v         If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare,  you will need to use online Premium software or any version of the desktop software download so that you can prepare a Schedule C for your business expenses.     https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653   https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922   https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-self-employment-business-expenses-like-home/L1k6HJY4A_US_en_US?uid=m6jrthmp     If you live in a state with a state income tax, you might need to make estimated payments to your state.   https://turbotax.intuit.com/tax-tips/small-business-taxes/the-home-office-deduction/L1RZyYxzv https://ttlc.intuit.com/turbotax-support/en-us/help-article/estimated-taxes/make-estimated-tax-payments/L5svMESaC_US_en_US?uid=mdna5aoh     https://turbotax.intuit.com/tax-tools/calculators/self-employed/   https://ttlc.intuit.com/community/business-taxes/discussion/self-employed-don-t-miss-these-tax-moves/00/3400413     https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-schedule-c/L5Fz3j5us_US_en_US?uid=m6a6gknk   https://ttlc.intuit.com/turbotax-support/en-us/help-article/payroll-additions-deductions/qualify-qualified-business-income-deduction/L0rM2cIIQ_US_en_US?uid=m5zpoxad   https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/self-employed-expenses-deduct/L37ZS1B8T_US_en_US?uid=m6fntpg7