Question: I took out $20,000 from my IRA. It raised my income to $55,000 which normally be around $35,000. This was a one time deal, 2020 income will be closer to $35,000. How do I handle this with Covered California?
Answer: If you don’t plan to make an IRA withdrawal in 2020, I suggest you do not change your stated income in your Covered California account. The IRS will recover some or all of the subsidy overpayment in 2019 on your next tax return.