Projected 2017 MAGI Modified Adjusted Gross income Line 37* is a VERY key question. We are talking about an ADVANCE Premium Tax Credit that you can take now, so that the Federal Government pays the credit to the Insurance Company and you only have to pay the lower amount.
When you do your 2017 taxes it will truly be calculated then, just like a w-4 for withholding deductions now. Changes in eligibility, income should be reported within 30 days, via your online account at Covered CA, in the “Report a Change” section. Here’s a sample letter that Covered CA might send if they can’t verify your income through electronic means. There should be a semi annual data matching and an annual redetermination. Agent Training Page 8
If you change eligibility for Advance Premium Tax Credits or Cost Sharing Reductions (Silver 94 – 73) then you get a new special enrollment period to change plans and don’t have to wait till next year. Agent training page 9
Please note, that Covered CA appears to no longer accept the paper application. The ONLINE application is easier, BUT they still need to verify to give you tax credits.
Call us 310.519.1335 and we can expedite your application over the phone in about 15 minutes. Email [email protected]om or call us 310.519.1335 if you have any questions.
In a lot of ways, IMHO it’s just easier to estimate what will be on Line 37* of your Tax Return and put that number down, rather than get bogged down with a million questions on the Covered CA site to get to the same spot.
What Covered CA is really looking for is MAGI – Modified — Adjusted Gross Income from your projected tax return.
Self Employed – 1099
This is all about figuring your 2014 taxes and the Credit that you will get for having a Qualified Health Plan in force as mandated by law. The screen shot on the left is from the Covered CA Application and the one on the right is from the 2012 1040 form (Instructions). Even if you don’t owe taxes, you can still get the credit. irs.gov FAQ’s
For a full analysis it’s imperative that you view our other pages on the Advance Premium Tax Credit and check with competent legal and tax professionals. If you would like to talk to a professional tax advisor about this try Bruce Bialosky [email protected] 310.273.8250
Related Pages in this section
- Filing Status? Married, Single, etc?
- Income Application Questions?
- MAGI – AGI + Social Security, Foreign Income, Tax Exempt Interest AGI Line 37 or taxable income Line 43?
- What counts as Income – Expense or Deduction for AGI line 37?
- Alimony – From a Divorce Settlement – Line 11 & 31
- Annuity Income? Line 16a
- Capital Gains – Line 13
- Caregiver Income?
- Credits & Deductions for IRS 1040
- Calif. Earned Income Tax Credit
- Charitable Donations
- Clergy – Housing Allowance?
- Educational Credits
- Employee Business Expense Unreimbursed
- Medical Expense Deduction – Line 40 Individual
- Military – Armed Forces
- Student Loan Interest?
- Debt Cancellation?
- Foreign Income IRC §911 – Line 21
- Gambling Income & Losses – Other Income Line 21
- Gift Income?
- Interest Income – Line 8 a & b
- Life Insurance Proceeds
- Rental Income? Line 17
- Schedule C – Self-Employment Income – Line 12
- SDI State Disability Benefits Taxable?
- Social Security Benefits Line 20 a & b
- Taxable & Non-Taxable Income?