r/tax•
Flat_Use3665

Dividend Income and Trusts

Unsolved

My Dividend Income for this year just passed $4500. Some years I do not make alot and have qualified for the EITC. I also am able to receive reduced cost health insurance because of my moderate income, but I am afraid I may be disqualifed because of asset limits. I have also had some pretty crazy health issues. I have about 300k in a brokerage account. This is not tax deferred and I plan on growing it. If I moved this to a trust what would the tax implications be and would I still have to report those dividends on my personal tax return and would that dividend income go against the EITC? Would the holdings in the trust disqualify me from medicaid if I were to become an unemployed and sick?

Posted Oct 29, 2022, 12:36 PM UTC

11
wild_b_cat•

With most types of trusts - yes, it would disqualify you.

There are special trusts that can let you qualify for low-income support, but they're complicated and involve giving up a lot of control. There's no free lunch here.

3