SecondCor521
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To deliberately over-simplify a scenario, I believe this means I could generate $80K in LTCG and also take $20K out of my IRA for a MAGI of $100K and only owe a maximum of $8,500 on the PTC reimbursements.
Is this in the ballpark of a correct interpretation?
Best regards,
Chris
Your use of the word "reimbursements" there is a bit confusing to me.
If your MAGI is $100K, then you would be expected to contribute the first $8,500 in premiums on your ACA policy. If your policy premium is more costly than that, then your PTC would cover the difference.
If you underestimated your income and received a higher APTC, you'd still be required to pay it back with your tax return.
Aside from premiums, you'd still possibly have deductibles, copays, and co-insurance of course.
The 400% FPL cliff is gone for 2021 and 2022, but returns in 2023 unless the law is changed further. So in 2023, if your MAGI is above 400% FPL and if the law remains the same, you'd have to repay all of your APTC.