Question: I made some ROTH IRA conversion which shows up as taxable income. It is clear for anyone to see that it is not a real income in the normal sense. It most certainly is not a repeatable income. So, it makes no sense to include that as income when projecting for a future year. Could you please clarify, and let me know if there is any way around this situation? Coming up with full premium amounts for the entire year would stretch my finances even if they would be refunded later on.
Answer: Yes. Any IRA distributions would be included in your adjusted gross income (AGI) for that tax year. Your eligibility for a subsidy will depend on your modified adjusted gross income (MAGI). How is it modified? The online application process will automatically use the AGI from your most recent 1040 as a starting point. Then you’ll be asked to estimate your annual income in the year in which you are to be insured, 2014 initially.