MAGI for Obamacare premium tax credit question

[shiody]

Recently retired and aure using Obamacare to get insurance coverage until we turn 65. Does anyone have advice on filling out IRS Form 8962? Specifically, "tax-exempt interest from Form 1040a, line 8b." I've never seen anything listed on that line in my past tax filings (which is from 403/401k and ira's). We have reported taxable interest on line 8a in the past, reported from 1099 DIV forms receivd from Vanguard. I guess we do have dividend interest, but we have never received it as cash, just had it reinvested. Perhaps this is why we have never gotten notification? Thanks, just a novice here.

 

[braumeister]

That refers to (for example) interest from municipal bonds that are free from federal income tax.

 

[audreyh1]

Tax exempt interest is always reported on the 1040 even though it doesn't contribute to the AGI for the tax tables. But as you see it affects other things.

 

[Texas Proud]

Also, do not get confused with any earnings in an IRA or 401(k).... that is not counted in this question...