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22gns57
New Member

The Affordable Care Act provides a subsidy that is reconciled on a monthly basis. How are capital gains declared in December treated?

Should I be taking action in December to minimize the capital gains?

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Accepted Solutions
TaxGuyBill
Level 9

The Affordable Care Act provides a subsidy that is reconciled on a monthly basis. How are capital gains declared in December treated?

The Premium Tax Credit ("subsidy") is not based on monthly income, it is based on annual income.

That means that income received in December will affect your total credit that you receive for the year.  If you received too much Advance credit (the amount they paid to reduce your monthly insurance payments), you may need to repay at least part of the Advance credit when you file your tax return.  When you enter your 1095-A into TurboTax, it will calculate if you need to repay anything, or if you will receive additional credit.

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1 Reply
TaxGuyBill
Level 9

The Affordable Care Act provides a subsidy that is reconciled on a monthly basis. How are capital gains declared in December treated?

The Premium Tax Credit ("subsidy") is not based on monthly income, it is based on annual income.

That means that income received in December will affect your total credit that you receive for the year.  If you received too much Advance credit (the amount they paid to reduce your monthly insurance payments), you may need to repay at least part of the Advance credit when you file your tax return.  When you enter your 1095-A into TurboTax, it will calculate if you need to repay anything, or if you will receive additional credit.

View solution in original post

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