PAYING OFF CREDIT CARD DEBT WITH IRA HAS EFFECTED MY INSURANCE SUBSIDY

Forum|Forum|2 years ago
April 14, 2024
1 reply
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Hello,

I had some life changes in loss of income and had used credit cards that ended up with a very high interest so I decided to use my IRA to and a Stock distribution to pay them off. Not realizing this put me in a higher income bracket when doing my taxes I have been confronted with having to pay insurance penalties to COV ERED CA IN ADDITION to the difference of the amount that was lowered because of my lower income. What do I do? Is there a way or a form to show how the money was used? I will file an extension which will be more fees and penalties!

Thank you for direction.

Murray

Not A Product Question

Opus 17

Employee

You will need to talk to a specialist for California to see if there are exceptions for this situation. I can suggest a couple of people that I think live in California.

@Critter-3

@VolvoGirl

Otherwise, you would need to upgrade to Turbotax Live to have a CPA that you can discuss the situation with, or you will need to do your own research, or contact a tax professional in your area.