Can I exclude assets when calculating how much I need to repay for my Advanced Premium Tax Credit? Particularly 401k money transferred to home equity.

[amandalitwak]

In 2019 we cashed out part of 401k assets to buy a house. If this amount was not counted as regular income, I would qualify for my APTC, and not have to pay a big chunk of that back.

[dmertz]

The taxable income from the 401(k) distribution cannot be excluded.