Quote:
Originally Posted by rustyp
Obamacare eligibility is based upon next year's projected income. Thus looking for insurance for 2023 you project your income for 2023.
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Unfortunately, what is considered earned income is not limited to wages and drawing from a taxable retirement account. It also includes interest (including interest from tax exempt municipal bonds), dividends, and realized capital gains (which can be offset by only $3 K in realized capital losses for a couple filing jointly). So as usual, responsible people who saved their money for retirement are penalized by the Obamacare definition of earned income. Many under 65 retirees now have a new dilemma, they should be happy that they can finally earn some interest on their savings, but then learn that the increased interest will be more than offset by the loss of Obamacare tax credits
because the increased interest puts them over the eligibility cap.