Tax Law (Questions About Taxes)/tax law - ACA


I have a $54,000 annuity which is 3/4 taxable if I cashed it all out. To reach the minimum AGI required for a Marketplace subsidy, I need to withdraw only $4000. The company requires that I withdraw the $13,000 non-taxable portion first before they will generate a 1099-R for any taxable amount.

Can I withdraw just the $4000 and claim it as a taxable event even if I don't receive a 1099 for it? I would like to keep the rest invested for the future.


Thanks for your question.

Since the withdrawal is not taxable you would be committing fraud by reporting it as taxable in order to receive a tax benefit (I.e. The subsidy).

The IRS would likely investigate the inclusion of income from an annuity without a corresponding 1099.

Hope this helps

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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