IRS 1040
IRS 1040 – MAGI Line 37 + (i) – (iii)
Tax Payer Family - Married Must File Jointly - children with part time jobs can file as long as they don't click box 6a
Tax Payer Family – Married Must File Jointly – Children Part Time Income – Line 6a?

Advocates Guide to MAGI

magi.berkley
Simple Chart from Berkley
Report changes monthly as they happen
Report changes monthly as they happen
irs.5187 IRS what's new in health care law
Publication 5187 – Health Care Reform, NEW Taxes & Credits
Form 8962 Instructions
Form 8962 Instructions
Premium Tax Credit Flow Chart - Eligible?
Premium Tax Credit Flow Chart – Eligible?
Covered CA - Countable Sources of Income
Covered CA – Countable Sources of Income – Getting to MAGI and Line 37 AGI
MAGI & Household Calculation - Western Poverty & Law Center
MAGI & Household Calculation – Western Poverty & Law Center

Modified Adjusted Gross Income  (MAGI) (2) … means adjusted gross income – Line 37* of the 1040   26 USC §62

Line 37 Adjusted Gross Income
Line 37 Adjusted Gross Income from your Tax Return Form # 1040

 

 

 

 

*increased by—

(i) IRC §91[foreign income] Form 2555

(ii) Tax-exempt interest (Line 8b) [IRS Coursework] [Form 8815  Interest Income   Investing Answers.com     ]the taxpayer receives or accrues during the taxable year; and

(iii) some Social Security Benefits  (Line 20a & b)   (UC Berkely One Page Summary)    CFR 1.36 B 1  * IRS Publication 974 George Town.edu

It’s important to read the all material & links as one can’t rely on Covered CA to give you the correct answer.

Details…

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 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]

(f) Dependent. Dependent has the same meaning as in section §152Ecfr.govIRS Interactive Assistant pdf 

(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.

 26 USC § 151 – Allowance of deductions for personal exemptions  pdf

(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.

(b) Taxpayer and spouse
An exemption of the exemption amount for the taxpayer; and an additional exemption of the exemption amount for the spouse of the taxpayer if a joint return is not made by the taxpayer and his spouse, and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.

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?

(c) Additional exemption for dependents
An exemption of the exemption amount for each individual who is a dependent (as defined in section 152) of the taxpayer for the taxable year.

Premium Tax Credit Form 8962   &    Instructions

Get a Free No Obligation Calculation of your Tax Credit, Premiums and see the benefit brochures.

View other pages & resources in this section…

Getting MAGI Right – 23 page primer by GeorgeTown University on differences that apply to Medicaid (Medi-Cal) and CHIP  Children’s Health Insurance Program    Insure Kids now CA

Health Care.Gov – What income to count

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

 

Anchors

16 comments on “MAGI – Modified Adjusted Gross Income – Line 37*

  1. i am head of household (IRS and CA FTB – CA Taxes) for my daughter and grandson who are both adults and grandaughter who is 2 yo. The three live full time with me, they have no income, and are all on medi-cal (no special circumstances). my AGI in 2016 will be approximately $78,000. can i claim them as dependents for tax purposes and still keep them on medi-cal?

    • I don’t think so. According to the income chart, you are at 322% of FPL-Federal Poverty Level. This is too high, even for the granddaughter to qualify as a child under 18 at 266% or less of FPL.

      Please get a complementary quote here and with subsidies your premium might be very low.

      The adult children might consider applying direct to Medi-Cal and seeing if they qualify.

      I don’t get paid to help you with Medi-Cal so contact your local office. See Western Poverty Law Center 375 page booklet for more details, namely page 45 – 2.32

      • thank you Steve.

        unfortunately our experience with medi-Cal over the last 2 years has been more than frustrating–no one knows anything but they think maybe they do!

        with that history of innumerable dead-end contacts, we are reluctant to call for reliable info.

        • The most reliable information that I’ve found is the 375 page booklet from Western Poverty Law Center. See links above.

          I still cringe when I reflect back when my local Congresswoman put on a introduction to ACA around September 2013 and when her speakers gave WRONG information about the current system, information for which I could lose my license, if I said it, her aides told me I was never allowed to interupt a well – respected member of congress.

          See our contact page, I do have some email addresses there.

          What are the ages of everyone in the household? What county are you in? How did they get Medi-Cal in the first place? I wouldn’t expect anyone to know the answer to your question over the phone. When you look at the Western Poverty Law Center booklet, do you expect a telephone employee in India to understand the tax code? Here’s a flow chart for calculating household size, this might be simpler.

          Don’t you think it’s a shame, that Medi-Cal won’t pay agents to help you enroll?

          Read everything VERY carefully, it looks like the adults over 21 could still qualify for Medi-Cal.

          When does your redetermination come up?

  2. I am in the process of applying, [for Covered CA] I do long form taxes, [1040] can I deduct car registrations, home property taxes, amortization from rental and expenses on rental to lower my income.

    • MAGI income is defined at the top of this page. MAGI is line 37 of your 1040 plus foreign income, tax exempt interest and some Social Security benefits. For details of what goes on line 17 Rental Income, please see our rental income page. We are happy to be your agent for Covered CA and there is no additional charge. Click here for instructions to appoint us if you already have an account with them.

  3. Hi,

    I have a couple of questions for you:

    I am currently receiving Medi-Cal and have had an increase in wages which has brought me to $16,938 in annual income. I desperately want to be enrolled in the Kaiser silver 94 HMO benefits through covered California.

    Will the increase in wages be considered a qualifying event?

    If I were to have you assist me would that remove the DHCS caseworker from determining approval or speed up the process?

    Thank you

  4. I am moving and am using special enrollment to change my healthcare coverage. According to the rules, if I apply before the 15th of a month, coverage begins on the 1st of the following month. If I apply after the 15th, then coverage begins on the 1st of the second month after I apply. Thus coverage can start up to a maximum of 45 days or so after I apply.

    In applying, I was declared as “conditionally eligible” due to them requiring that I “verify income” by 90 days after my application date.

    My question is:

    Will I be uninsured for the period after my coverage is suppose to start up until the day the approve my attempt to verify income? This could be a 45 day period in which I need medical care. Or will I be covered for those 45 days and if they reject my verification of income – then will they drop me from my new plan?

    Thanks for all the help on your website!

  5. If a person owns property and is on Covered California will all the medical expenses have to be payed back after the death of the person on Covered California.
    O

  6. Hi Steve,

    I’m enrolled in anthem blue cross viA California Covered Care.

    I get letters that contradict each other routinely. One letter says I’m covered , the other says I’m not.
    I’ve spent hours on phone with California covered care with people who have questionable English literacy.

    I need a professional to deal with California Covered as they are too disorganized for a non insurance specialist to deal with all their idiosyncratic behavior.

    Can you help me ?

    Thanks,

    Martin

    • Yes, we would be glad to help you. Two things that you need to do to transfer your case to us.

      1. Change your Covered CA agent delegation to use. Here are the instructions. If you have trouble, just send us your user name and password and we can do it.

      2. Email us for the Blue Cross Change of Broker Form Blue Cross though has tricky rules and if you are a “house account” they might not pay us.

      Once we have access to your Covered CA account, we can view all the letters they send you. If Blue Cross won’t recognize us as your agent, then:

      3. Get an ONLINE Member Account and give us the user name and password for that.

      Then we should be fully able to help you. If you were to get additional coverage, like Life Insurance, Long Term Care or Disability that would be a way to compensate us for our time, if you are a “House Account” or you had coverage with Blue Cross prior to 1.2014.

      Steve

  7. I am currently receiving Medi-Cal due to low income (my MAGI is less than 138% FPL).

    On my 65th birthday, I will get to keep Medi-Cal just by being 65 years old, even if my MAGI is greater than 138% FPL. Is this assumption correct ?

    Regards,
    Tom N

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