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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1 Best answer

Level 15

Jun 4, 2019 4:15:14 PM

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.

Level 15

Jun 4, 2019 4:15:14 PM

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.

Level 15

Jun 4, 2019 4:15:15 PM

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.com/stay-under-obamacare-premium-subsidy-cliff.html</a>