Will IRA distribution count as income when considering Premium Tax Credit (PTC) eligibility? Will it make any difference if converting it to a ROTH IRA at the same time?

[zps088]

For example, if $12,000 income is needed to get Premium Tax Credit in 2017, assuming other income of $5000, will converting $7000 from IRA to ROTH be eligible for PTC?

[Critter]

Yes the conversion will count as income for the PTC. 

[TaxGuyBill]

That is assuming the original Traditional IRA was all deductible.  If part of it was non-deductible contributions, then only part of the conversion would be taxable.