TaxGuyBill
Level 15

@EarlineLaBuy wrote:

According to Covered Calif, this amount from the inherited annuity should not affect her taxable premium tax credit $. 


 

Did they state why?

According to Federal law, income from a taxable annuity IS counted as income for the Premium Tax Credit.

 

As a side note, inheriting the annuity does not make taxable income.  So perhaps that is what the person at Covered California was referring to?  It is the 'getting' money out of the annuity that is taxable income.

There are also some lump-sum payments that would not affect Medicaid (Medi-Cal), so it is possible that is what they were referring to (although offhand, I'm not sure if this would qualify for that or not).

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