Rental income or a vacation home counts as taxable Covered California MAGI Income
What rights do your Tenant’s Have?
Covered CA MAGI Income #Rental Income & Losses
- Rental Income net after losses, shows up on your 1040 tax return, Schedule E, Schedule 1 and is counted towards MAGI income.
- Rental Property Income and Losses get calculated on Schedule E Supplemental Income & Loss
- Take the profit or loss from Schedule e and put it on Schedule 1 Line 5
- Put your income or loss from Schedule 1 on of your 1040.
- Put your MAGI Modified Adjusted Gross income from your 1040 on line 2a of 8962 Premium Tax Credit
- Schedule E Supplemental Income & Loss
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#Adjustments to Income - Schedule 1
#Schedule1 1040
- Part I Additional Income
- 2a Alimony received
- 3 Business income or (loss). Attach Schedule C
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- 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
- 7 Unemployment compensation
- 8 Other income:
- a Net operating loss
- b Gambling income
- c Cancellation of debt
- d Foreign earned income exclusion from Form 2555
- e Taxable Health Savings Account distribution
- 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
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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. Steve's VIDEO
- Nor is there a lien against your estate for Covered CA or MAGI Medi Cal
Federal IRS #Form8962 Instructions Premium Tax Credit
Reconciliation Form for Covered CA Subsidies attaches to 1040
Subsidy is IMHO hocus pocus - smoke & mirrors
it all comes out when you file taxes!
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Introduction
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If you got too high a subsidy or too low, it gets reconciled at tax time on form 8962. If your subsidies were too high you may have to pay the excess back and maybe penalties, if too low, you can get a tax refund or lower the amount you have to pay. In a lot of ways, IMHO subsidies are hocus pocus, jiggery pokery - smoke and mirrors as it's all guesswork and promises. Be sure to report income and household changes within 30 days.
- Instructions for IRS Form #8962 Subsidy Reconcilation
- Tracking Your Covered California Subsidy on your 1040 Federal Tax Return Insure Me Kevin.com
- ARPA & Inflation Reduction Act of 2022
- Instead of increasing taxpayer audits, policymakers should simplify taxes across the board. That way, it would be easier for everyone to pay the correct amount to the government. heritage.org/who-those-87000-new-irs-agents-would-audit
- That 87,000 new tax agents estimate represents everything from IT techs to customer service people who answer the phone and help you file your return. Second, it includes attrition. So, the actual enforcement personnel is 5,000 LA Times * Mother Jones
- IRS backlog hits nearly 24 million returns, further imperiling the 2022 tax filing season
- ARPA Stimulus - you don't have to pay back 2020 overage on subsidies IRS.Gov *
- InsureMeKevin.com on subsidies & pay backs... 1.25.2022 update ARPA and 600% CA
- 1040 Instructions
- Overview FTB site
- How to Reconcile Subsidies FTB
- Calculate Pay Back
- Assistance Repaying California Subsidies
- covered ca.com/the most you might have to pay back
- 2022 Insure Me Kevin.com
- Our webpage on Form 8962 - Premium Tax Credit Subsidy Reconciliation
Vacation Homes
Tax Cut & Jobs Act
IRS Tips
Dwelling Unit.
This may be a house, an apartment, condominium, mobile home, boat, vacation home or similar property. It’s possible to use more than one dwelling unit as a residence during the year.
Used as a Home.
The dwelling unit is considered to be used as a residence if the taxpayer uses it for personal purposes during the tax year for more than the greater of: 14 days or 10% of the total days rented to others at a fair rental price. Rental expenses cannot be more than the rent received.
Personal Use.
Personal use means use by the owner, owner’s family, friends, other property owners and their families. Personal use includes anyone paying less than a fair rental price.
Divide Expenses.
Special rules generally apply to the rental of a home, apartment or other dwelling unit that is used by the taxpayer as a residence during the taxable year. Usually, rental income must be reported in full, and any expenses need to be divided between personal and business purposes. Special deduction limits apply.
How to Report.
Use Schedule E to report rental income and rental expenses on Supplemental Income and Loss. Rental income may also be subject to Net Investment Income Tax. Use Schedule A to report deductible expenses for personal use on Itemized Deductions. This includes such costs as mortgage interest, property taxes and casualty losses.
Special Rules.
If the dwelling unit is rented out fewer than 15 days during the year, none of the rental income is reportable and none of the rental expenses are deductible. Find out more about these rules; see Publication 527, Residential Rental Property (Including Rental of Vacation Homes).
Additional IRS Resources:
- Tax Topic 415 – Renting Residential and Vacation Property
- irs.gov/know-the-tax-facts-about-renting-out-residential-property
- Rental Income and Expenses – Real Estate Tax Tips
- Is My Residential Rental Income Taxable and/or Are My Expenses Deductible? IRS
IRS Topic 414 Rental Income & Expenses
Tips
IRS Rental Income Publication #527 pdf
Form 1040, Schedule E (PDF), Supplemental Income and Loss, to report income and expenses related to real estate rentals
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Covered CA
#Vacation Homes MAGI Income?
Renting out a vacation property to others can be profitable. If you do this, you must normally report the rental income on your tax return. You may not have to report the rent, however, if the rental period is short and you also use the property as your home. Here are some tips that you should know:
- Vacation Home. A vacation home can be a house, apartment, condominium, mobile home, boat or similar property.
- Schedule E. You usually report rental income and rental expenses on Schedule E, Supplemental Income and Loss. Your rental income may also be subject to Net Investment Income Tax.
- Used as a Home. If the property is “used as a home,” your rental expense deduction is limited. This means your deduction for rental expenses can’t be more than the rent you received. For more about these rules, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes).
- Divide Expenses. If you personally use your property and also rent it to others, special rules apply. You must divide your expenses between rental use and personal use. To figure how to divide your costs, you must compare the number of days for each type of use with the total days of use.
- Personal Use. Personal use may include use by your family. It may also include use by any other property owners or their family. Use by anyone who pays less than a fair rental price is also considered personal use.
- Schedule A. Report deductible expenses for personal use on Schedule A, Itemized Deductions. These may include costs such as mortgage interest, property taxes and casualty losses.
- Rented Less than 15 Days. If the property is “used as a home” and you rent it out fewer than 15 days per year, you do not have to report the rental income. In this case you deduct your qualified expenses on Schedule A.
- Use IRS Free File. If you still need to file your 2015 tax return, you can use IRS Free File to make filing easier. Free File is available until Oct. 17. Free File is available only through the IRS.gov website.
IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scams, taxpayer rights and more.
Additional IRS Resources:
- Tax Topic 415 – Renting Residential and Vacation Property
- Rental Income and Expenses – Real Estate Tax Tips
- IRS Tax Tip 2018-79, May 22, 2018
- Publication 527 Residential Rental Property including VACATION HOMES
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Tenants & Condo Rights
California #Tenants Rights
Los Angeles Mayor Karen Bass April 2023 NEW Protections for Renters
LA Times – What to know about new Tenant’s protection Laws
California Tenants & Landlords Rights & Responsibilities
See our webpage on Small Claims Court & Mediation
CA Department of Real Estate Publications
- housing.lacity.org/renter-protections
- Quick Guide for Landlords Hiring a Property Manager Landlord Brochure 14-264
- Quick Guide for Tenants Renting a Home Tenant Brochure 14-264
- A Homeowner’s Guide to Foreclosure in California #RE 15 (New 7/10) Useful information for homeowners in financial distress who live in their homes.
- Financial Sense to White Picket Fence #RE 18 This brochure provides helpful hints and tips relating to real estate financial literacy.
- Eviction Process – Video
- dre.ca.gov/Complete List Publications
#Condo Publications
SUBDIVISION PUBLICATIONS
https://www.dre.ca.gov/Publications/CompleteListPublications.html
- Operating Cost Manual for Homeowners Associations #RE 8 (1/16)
Contains guidelines and worksheets for budget preparation and calculation of reserves and assessments. - Operating Cost Manual Addendum – (5/23)
- Reserve Study Guidelines for Homeowner Association Budgets #RE 25 (Rev. 8/10)
Explains how to determine sufficient reserve funds. - Subdivision Public Report Application Guide #RE 9 (Rev. 6/11)
Provides instructions and explains what is required to apply for a subdivision public report. - SOPRAS Guide #RE 9A (Rev. 5/18)
Subdivisions Online Public Report Application System (SOPRAS) Guide. - A Guide to Understanding Residential Subdivisions in California
Resource for everyone who has an interest in California subdivisions - Residential Subdivision Buyer’s Guide
Guide for consumers who are considering purchasing a home in a new subdivision in California - Living in a California Common Interest Development #RE 39 (Rev. 8/16)
Overview of rights, duties and responsibilities of homeowner associations and homeowners. Explains CC&Rs. - Our Condo Website on Web Archive November 2021
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HOA – Condo ONLINE Education
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#RE 8 (1/16)Homeowners Associations: Last Week Tonight with John Oliver (HBO)
You’ve been a tremendous help in providing this published documentation and I appreciate you.