Solved: I converted $30,000 from my traditional IRA to Roth. My only income is social security. Why does TurboTax calculate that I have to return the entire Obamacare premium?
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jsmuransky
New Member

I converted $30,000 from my traditional IRA to Roth. My only income is social security. Why does TurboTax calculate that I have to return the entire Obamacare premium?

 
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Accepted Solutions
MichaelL1
Level 15

I converted $30,000 from my traditional IRA to Roth. My only income is social security. Why does TurboTax calculate that I have to return the entire Obamacare premium?

Due to the conversion which added $30,000 of extra income to your return, this changes what the Obamacare premium would have been.

When you file the taxes the actual income is shown versus the estimated amount at the time the credit was computed.

See below for much more detail on this.

https://ttlc.intuit.com/replies/4234767


View solution in original post

2 Replies
MichaelL1
Level 15

I converted $30,000 from my traditional IRA to Roth. My only income is social security. Why does TurboTax calculate that I have to return the entire Obamacare premium?

Due to the conversion which added $30,000 of extra income to your return, this changes what the Obamacare premium would have been.

When you file the taxes the actual income is shown versus the estimated amount at the time the credit was computed.

See below for much more detail on this.

https://ttlc.intuit.com/replies/4234767


View solution in original post

Hal_Al
Level 15

I converted $30,000 from my traditional IRA to Roth. My only income is social security. Why does TurboTax calculate that I have to return the entire Obamacare premium?

Money you convert from Traditional to Roth accounts all go into MAGI, for determining eligibility for the premium subsidy.
Reference: <a rel="nofollow" target="_blank" href="https://thefinancebuff.com/stay-under-obamacare-premium-subsidy-cliff.html">https://thefinancebuff.c...>
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