This fall my mutual fund retirement account through State Farm switched brokers. When I went to do my taxes, even though my fund lost money in 2018, my 1099-DIV showed a $10,000 capital gain. My understanding is when the fund moved to a new broker, they sold the old fund (hence the capital gain) and bought shares in the new one. According to my tax software, I now owe the IRS $11,500 because, being 63 (too young for Medicare, too old to find work) and on a fixed income, I was getting subsidized insurance payments. That $10,000 capital gain pushed my income up enough that now I have to pay the government back $15,000 for the subsidized insurance payments.
How is this possible? I didn't cash that $10,000 but it looks like I will have to withdraw the money from my mutual fund to pay my taxes. I can't believe that, because my mutual fund switched brokers, it's costing me $11,000 and will likely put a halt to my getting health insurance in 2019. I can't afford the $1,300 a month insurance premiums as that will be more than my husband's social security check.
Do I have any hope at all?
Submitted February 16, 2019 at 10:02PM by NanaBazoo http://bit.ly/2TNAoal
