Saco, ME asked in Tax Law for Maine

Q: Does a Roth IRA conversion affect eligibility for Health care premium tax credit?

My spouse was not working in 2019, so we needed a premium tax credit to pay for health care coverage. I also converted an IRA to a Roth IRA (apx value: $80k). I understood I would have to pay taxes on this amount, but I did not expect this type of income would be counted towards my ability to pay as it relates to the PTC (which it seems it did). Do I have any recourse? Is this just an unfortunate tax situation? Where can I direct my concern about this potentially unfair tax situation?

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1 Lawyer Answer

A: It's income.

Probably would have been a good idea to hire a professional to advise you before you made a big decision.

Nothing to be done at this point, you can't just put it back.

Call your representatives and tell them to change title 26 of the US code.

Next time hire a professional to advise you on major decisions.

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