What is the “bottom Line” on the income number MAGI
Modified Adjusted Gross Income (MAGI) (2) … means adjusted gross income – Line 37* & 7 for earlier years or 8b of the new 2019 1040 Form * Health Care.Gov * 26 USC §62 *
The time frame is 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!
Official Publications on MAGI
It’s important to read the all material & links as one can’t rely on Covered CA to give you the correct answer.
UC Berkeley explains MAGI Modified Adjusted Gross Income –
Click on image to enlarge and for a more clear picture
Western Poverty & Law Explanation of MAGI – IMHO one of the most authoritative publications I’ve ever seen!
Get more detail on how each type of income counts under the IRS code for MAGI Income.
See our child & subpages for MAGI Income
Form 8962 Premium Tax Credit
Reconciliation Form attaches to 1040
Subsidy is IMHO hocus pocus - smoke & mirrors
it all comes out when you file taxes!
Our webpage on Form 8962 - Premium Tax Credit Subsidy Reconciliation
(i) A taxpayer’s modified adjusted gross income; (Line 37 NEW Line 7 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]
(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…
Power Point presentation CMS Income Counting MAGI
Health Care.Gov – What income to count
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
- H & R Block
- Estimate the Subsidy for Health Insurance, benefits, premiums, etc.
- 8962 ONLINE Calculator
Child, Related Pages & Site Map
- Income Chart – Line 8b 1040 Covered CA MAGI
- Table of Contents – Details of Income, Deductions & Expenses for MAGI
- Alimony – From a Divorce Settlement
- Annuity Income? IRA, Pension # 1040 Line 4
- Calif. Earned Income Tax Credit
- Capital Gains – Line 6
- Caregiver Income?
- Charitable Donations
- Clergy – Housing Allowance?
- Debt Cancellation? Foreclosure?
- Educational Credits
- Employee Business Expense Unreimbursed
- Foreign Income IRC §911
- Fudging the Income or Deductions?
- Gambling Income & Losses – Other Income Line 21
- Gift Income?
- Interest Income – Line 8 a & b
- Itemize or use Standard Deduction?
- Life Insurance Proceeds
- Medical Expense Deduction – Line 40 Individual
- Rental Income? Line 17
- Schedule C – Self-Employment Income – Line 12
- SDI State Disability Benefits Taxable?
- Sharing, Gig, On Demand, Access Economy, Air Bnb, Lyft, Uber
- Social Security Benefits Line 5 a & b
- Student Loan Interest?