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Calculate your Covered CA MAGI Income
take #Line8b 11 Adjusted Gross income then add line 2a, 6a & 8 (Foreign Income)
- 1040 IRS Annual Tax Form
- Schedule 1 Additional Income & Adjustments to Lower your MAGI Income
- Estimate next years MAGI Income?
- Get instant quotes, subsidy calculation and coverages
- NO ASSET TEST for MAGI based subsidies in Covered CA or MAGI Medi Cal Qualification. VIDEO
- Nor is there a lien against your estate for Covered CA or MAGI Medi Cal
Scroll down for a comprehensive list and details of all the ins and outs of the definition of MAGI Income
Modified Adjusted Gross Income (MAGI) (2) … means
adjusted gross income – Line 11 of the 1040 Form * Health Care.Gov * 26 USC §62 *
Get even more details & definitions of MAGI Income
Jump to the section you want:
The upcoming year – the future for what you tell Covered CA!
Sure, many people think it’s the past as Covered CA may ask for last years paperwork, but that’s BS! You might have to give back all the subsidies when you file Subsidy Reconciliation form #8962!
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Official Publications on MAGI
UC Berkeley explains MAGI Modified Adjusted Gross Income –
Click on image to enlarge and for a more clear picture
Federal IRS #Form8962 Instructions Premium Tax Credit
Reconciliation Form attaches to 1040
Subsidy is IMHO hocus pocus - smoke & mirrors
it all comes out when you file taxes!
- Instructions for IRS Form #8962 Subsidy Reconcilation
- 1040 Instructions
- Overview FTB site
- Our webpage on Form 8962 - Premium Tax Credit Subsidy Reconciliation
- Part I Additional Income
- 2a Alimony received
- 3 Business income or (loss). Attach Schedule C
- Get Health Quote for your business
- 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
- 7 Unemployment compensation
- 8 Other income:
- Part II Adjustments to Income
- 11 Educator expenses
- 13 Health savings account deduction. Attach Form 8889
- 15 Deductible part of self-employment tax. Attach Schedule SE
- Learn more about your Social Security Benefits
- 16 Self-employed SEP, SIMPLE, and qualified plans -
- 17 Self-employed health insurance deduction
- 19a Alimony paid
- 20 IRA Individual Retirement Account deduction
- 21 Student loan interest deduction
- Our Quote Engine Takes all the complexity out of using pencil and paper to figure out the premiums per the Obamacare/ACA rules under CFR §1.36B-3 *
- Get more detail on the Individual & Family Carriers available in CA
If you live and work abroad, you may be able to claim the foreign earned income exclusion. If you qualify, you won’t pay tax on up to $100,800 of your wages.
Reporting Foreign Income:
Tax Tips from the IRS
Did you receive income from a foreign source? Are you a U.S. citizen or resident who worked abroad last year? If you answered ‘yes’ to either of those questions, here are eight tips to keep in mind about foreign income:
- Report Worldwide Income. By law, U.S. citizens and residents must report their worldwide income. This includes income from foreign trusts and foreign bank and securities accounts.
- File Required Tax Forms. You may need to file Schedule B, Interest and Ordinary Dividends, with your U.S. tax return. You may also need to file Form 8938, Statement of Specified Foreign Financial Assets. In some cases, you may need to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts. Visit IRS.gov for more information.
- Review the Foreign Earned Income Exclusion. If you live and work abroad, you may be able to claim the foreign earned income exclusion. If you qualify, you won’t pay tax on up to $100,800 of your wages
- ***However, it count’s towards Covered CA MAGI income, if you want subsidies!
- and other foreign earned income in 2015. See Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion, for more details.
- Don’t Overlook Credits and Deductions. You may be able to take a tax credit or a deduction for income taxes paid to a foreign country. These benefits can reduce your taxes if both countries tax the same income.
- Additional Child Tax Credit. You cannot claim the additional child tax credit if you file Form 2555, Foreign Earned Income, or 2555-EZ, Foreign Earned Income Exclusion.
- Use IRS Free File. Almost everyone can prepare and e-file their federal tax returns for free, using IRS Free File. If you make $62,000 or less, you can use brand-name tax software. If you earn more, you can use Free File Fillable Forms, an electronic version of IRS paper forms. Some Free File software products and fillable forms also support foreign addresses. Free File is available only through IRS.gov.
- Tax Filing Extension is Available. If you live outside the U.S. and can’t file your tax return by the April 18 due date, you may qualify for an automatic two-month extension until June 15. This extension also applies to those serving in the U.S. military abroad. You will need to attach a statement to your tax return explaining why you qualify for the extension.
- Get IRS Tax Help. Check the international services site for the types of help the IRS provides, including how to contact your local office internationally. All IRS tax tools and products are available at IRS.gov.
- Do you need USA health coverage, as a resident? Get quotes
- Travel Insurance? Get Quotes
- Do you qualify for an exemption?
- Do you have a USA residence?
- For more information – See Tax Guides & Publications
#Insubuy Travel Health Insurance
Instant Quotes, Details and ONLINE Enrollment
Our webpage on Travel Insurance
- Medicare VIDEO Medicare & You: Traveling Abroad
- Our webpage on Medicare Coverage outside of USA
- FAQ - Buying Medi Gap if you live outside USA
- Get Travel Quotes & Information
- What if you work in two or more different Countries?
- International Social Security agreements,“Totalization agreements,” have two main purposes.
- First, they eliminate dual Social Security taxation, the situation that occurs when a worker from one country works in another country and is required to pay Social Security taxes to both countries on the same earnings.
- Second, the agreements help fill gaps in benefit protection for workers who have divided their careers between the United States and another country.
- TAX #Guides
Our Webpages on:
- Interest subject to penalty for early withdrawal.
- Money borrowed to invest in certificate of deposit.
- U.S. Savings Bonds
- Education Savings Bond Program
- U.S. Treasury Bills, Notes, and Bonds
- Bonds Sold Between Interest Dates
- State or Local Government Obligations
- Original Issue Discount (OID)
- When To Report Interest Income
- How To Report Interest Income
Nonresident aliens are not taxed on certain kinds of interest income as follows, per Internal Revenue Code subsections 871(h) and (i), provided that such interest income arises from one of the following sources:
Interest on a bond that is used to finance government operations generally is not taxable if the bond is issued by a state, the District of Columbia, a U.S. possession, or any of their political subdivisions. Political subdivisions include:
- Port authorities,
- Toll road commissions,
- Utility services authorities,
- Community redevelopment agencies, and
- Qualified volunteer fire departments (for certain obligations issued after 1980).
Obligations that are not bonds. Interest on a state or local government obligation may be tax exempt even if the obligation is not a bond. For example, interest on a debt evidenced only by an ordinary written agreement of purchase and sale may be tax exempt. Also, interest paid by an insurer on default by the state or political subdivision may be tax exempt.
Indian tribal governments. Bonds issued after 1982 by an Indian tribal government are treated as issued by a state. Interest on these bonds is generally tax exempt if the bonds are part of an issue of which substantially all of the proceeds are to be used in the exercise of any essential government function. However, interest on private activity bonds (other than certain bonds for tribal manufacturing facilities) is taxable.
Original issue discount (OID) on tax-exempt state or local government bonds is treated as tax-exempt interest.
- You tube VIDEO on Schedule D
- Schedule 1040 D Capital Gains & Losses
- Net Operating Losses 536
- Sales and Disposition of Assets 544
- Learn More ⇒IRS Tax Topic 409
- Report most sales and other capital transactions and calculate gain or loss on Form 8949 (PDF), Sales and Other Dispositions of Capital Assets, then summarize capital gains and deductible capital losses on
- Form 1040, Schedule D (PDF), Capital Gains and Losses.
- Publication 505, Tax Withholding and Estimated Tax
- Publication 550, Investment Income and Expenses
- 551 - Basis of Assets
- Publication 544, Sales and Other Dispositions of Assets
- Topics 701 and 703, and Publication 523, Selling Your Home.
- How much does Term Life Insurance to cover any loans and protect your family run?
- A “paper loss” – a drop in an investment’s value below its purchase price – does not qualify for the deduction. The loss must be realized through the capital asset’s sale or exchange.
- Publication 544, Sales and Other Dispositions of Assets (PDF 321K)
- Form 1040, U.S. Individual Income Tax Return (PDF 136K)
- Publication 505, Tax Withholding and Estimated Tax (PDF 367K)
- Publication 550, Investment Income and Expenses (PDF 516K)
- Publication 17, Your Federal Income Tax (PDF 2075K)
- Publication 564, 551 - Mutual Fund Distributions (PDF 178K)
- Publication 547, Casualties, Disasters, and Thefts (PDF 133K)
- Publication 527, Residential Rental Property (Including Rental of Vacation Homes)
- Schedule B (Form 1040), Interest and Ordinary Dividends General Information
Details… of MAGI
#Household.income means Code of FEDERAL Regulations – IRS Income Taxes – 1.36B 1 – (e) …(1) … the sum of—
(i) A taxpayer’s modified adjusted gross income; (Line 37 Line 11 1040) plus
(ii) The aggregate modified adjusted gross income of all other individuals who—
(A) Are included in the taxpayer’s family under paragraph (d) [below] of this section; and
(B) Are required to file a return of tax imposed by section 1 for the taxable year (determined without regard to the exception under section (1)(g)(7) to the requirement to file a return). [26 USC §6012 ♦ IRS tool to see if you must file a return ♦ Medi-Cal Household Size Flow Chart ♦ Blog – Insure Me Kevin.com] DHCS *
(d) … A taxpayer’s family means the individuals for whom a taxpayer properly claims a deduction for a personal exemption under section 151 for the taxable year.
Family size [Medi-Cal Household Size Flow Chart ♦ Blog – Insure Me Kevin.com] means the number of individuals in the family. Family and family size may include individuals who are not subject to or are exempt from the penalty [mandate] under §5000 A (f) (1) for failing to maintain minimum essential coverage. Health Care.gov explanation *
(a) Allowance of deductions
In the case of an individual, the exemptions provided by this section shall be allowed as deductions in computing taxable income.
To be more clear — (2) Married taxpayers must file joint return. A taxpayer who is married (within the meaning of section 7703) at the close of the taxable year is an applicable taxpayer only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. GPO.Gov Final Regulations Page 11 * Turbo Tax Calculator * Tax Policy Center….. Joint or separate? * Estranged Spouse?
View other pages & resources in this section…
- Getting MAGI Right – 23 page primer by George Town University on differences that apply to Medicaid (Medi-Cal) and CHIP Children’s Health Insurance Program Insure Kids now CA
- Power Point presentation CMS Income Counting MAGI
- InsureMeKevin.com analysis
- See also this article on Kevin’s site
- If you would like to talk to a professional tax adviser about this try Bruce Bialosky [email protected] 310.273.8250
- Agent Training – MAGI and APTC PowerPoint Presentation
10 days for Medi Cal 22 CCR § 50185
Our webpage on ARPA & Unemployment Benefits - Silver 94
- Our VIDEO on how to report changes to Covered CA
- Lost your job? How to keep your Health Insurance. Shelter at Home VIDEO
- References & Links
- Here's instructions, job aid, reporting change in income
- Our webpage on the exact definition of MAGI Income
- If you've appointed us - instructions - as your broker, no extra charge, we can do it for you.
- Voter Registration
- Denial of benefits and possible criminal charges if you don't report changes in income!
- Fudging Income?
- Western Poverty Law on reporting changes
- How to cancel coverage.
- Visit our webpage on how to report changes
Child, Related Pages & Site Map
“MAGI Income – FAQ’s
- Question Will not filing a tax return affect my Medi Cal application for claiming my daughter as a dependent.
- Question If one no longer has his job and expects his income for this year to be low (pursuing a new self-employment business) and thus qualify for Medi-Cal, how can one prove this in applying in order to be accepted for Medi-Cal. (The tax returns would show too much income from the previous year in order to qualify.)
- Question I have a part time job and earn less than $2k/month, do I still qualify for Medi-Cal? I have over $3k in assets, is that relevant to getting Medi-Cal?
- Question If you earn more than Medi Cal Limits 138% of income, do you have to repay the premiums that Medi Cal paid to the HMO, if you didn’t tell Medi Cal that you were earning more?
- Answer ***Usually no. Learn More @ Insure Me Kevin.com
- Question Can I get Medi-Cal if I get unemployment?
- Answer ***Depends on your estimated MAGI Income. Qualifying for MAGI Medi-Cal a function of the number of people in your family – your tax return and your expected MAGI income for the upcoming – current tax year.
- Please use our complementary subsidy, premium and benefits calculator and then we can help you better. Medi-Cal has year around enrollment.
- Please review the special enrollment qualifications.
- Questions I’m on Medi-Cal as I have no income. I just turned 65.
- Do I have to apply for Medicare A Hospital? Part B Doctor Visits?
- I can’t afford the Part B premium.
- Answer ***How to get help with Part B Costs Publication # 10126
- If you’ve worked and paid into Social Security for 10 years, Part A Hospital shouldn’t be any charge. Here’s the link to Enroll in Medicare
- Once you get Medicare A & B we can set you up with a Medicare Advantage Plan with Blue Shield, AARP or Blue Cross. Most of these plans have ZERO premium and all include Part D Rx. See Western Poverty Law Page 2.36 for more details
- Question I got a new job in April. My company will be offering me health benefits starting in June. But job is not certain, they might let me go anytime.
- What do you recommend regarding Medi-Cal? can i continue with Medi cal?
- if i cancel medi cal do you think if i loose my job i will be again eligible for the medi cal?
- Answer ***Glad to hear you got a new job with benefits. Medi-Cal and Covered CA require that you report changes within 10 – 30 days.
- Do you have a Medi Cal ONLINE account? If your income is below 138% of poverty level, I guess you could have both Medi Cal and your Group Coverage. Here’sinformation on dual coverage. Yes, you can continue with Medi Cal depending on your income. If you lose your job, report that to Medi-Cal. BTW, I don’t get paid to help the public with Medi-Cal. Here’s Medi Cal’s contact page.
- Question If the Company you worked at got bought out by another company, and your status changes from contractor to full time employee, are you still eligible for Medical [Medi-Cal] if you can’t afford the premiums or out of pocket [deductibles, co-pays] insurance plans they offer, based on your annual [MAGI} income?
- My position is outside sales, with a home office, now I am having even more expenses than before, due to the new company’s contract. I can not afford what they offer in regards to healthcare coverage.
- Answer ***If you qualify for Medi-Cal is based on your MAGI income being above or below 138% of Federal Poverty Level FPL. If your income is between 138 and 400% of FPL, you can probably get Covered CA subsidies to help pay your premium.
- Use our complementary instant quote engine to find out.
- Your statement about affordability of health insurance premiums for your employers plan has to do with getting Covered CA subsidies, not Medi-Cal. Basically, it depends on if the premiums are more or less than 9.66% of income. We deal with the affordability issue for Covered CA subsidies on this page.
- ***FYI Kentucky Gets exemptions so that they can require Medicaid recipients to work La times
- Question I am 70 years of age and have been on medi cal due to low income. I recently applied for my ex husbands social security and my income increased to $1379.10. Can I still qualify for medi cal?
- Answer ***See our Medi-Cal Qualification for Seniors – Aged & Disabled.
- VIDEO What is APTC Advance Premium Tax Credit
- Health Net VIDEO How to get subsidies – pay less for coverage
- Interactive Tax Assistant (ITA)
- Am I eligible to claim the Premium Tax Credit?
- IRS FAQ on Premium Tax Credit
- turbo tax.com - FREE for simple returns
- H & R Block
- E file.com
- Estimate the Subsidy for Health Insurance, benefits, premiums, etc.
- 8962 ONLINE Calculator
- Tax Form Calculator.com
- e tax.com
- Marriage Higher or Lower Taxes?
- IRS Withholding Calculator