I had my return rejected when I filed because I left off the 1095-A document. This is the Health Insurance Marketplace document.
I received an ACA healthcare plan through a state marketplace since I was unemployed, and our household income was so low last year.
At the end of the year, realizing that we had a huge gap to get us to ~$89K, where the tax rate jumps from 12% to 22%, we made IRA conversions to Roth's, thinking that this would NOT be counted as income since the money never actually touches our day-to-day bank account; the cash stays in "Retirement Space."
However, it IS apparently counted as income. And so the ACA subsidy was clawed back. And we have a HUGE liability.
Is there any work-around to prevent this from being marked as actual "income" and avoid the 1095-A induced heartburn? I am fine paying tax on the conversion - those are the rules - but to have it be counted as money we could use in our daily budgeting is hitting hard.
Any ideas, Tax Experts?
