MAGI – Modified Adjusted Gross Income (Line 37*)
What counts as Income, Expense, Credit or Deduction?

Please view our MAIN MAGI page for and introduction to what MAGI Income is for Covered CA tax subsidies then view the child pages below for help with your specific question or concern.

IRS Website on  Credits & Deductions for Individuals & Families

Subtract tax credits from the amount of tax you owe. There are two types of tax credits:

  • A nonrefundable tax credit means you get a refund only up to the amount you owe for taxes.
  • A refundable tax credit means you get a refund, even if it is more than what you owe.
    • Just like Covered CA subsidies APTC

IRS Interactive Tax Assistant

What’s better, to take the subsidy now or at tax time?

What income is taxable or non taxable?
for Covered CA subsidies?

Be sure to compare and contrast this with MAGI Income for Covered CA Line 37 of your tax return +…

What You Need to Know about Taxable and Non-Taxable Income

All income is taxable unless a law specifically says it isn’t.

Here are some basic rules you should know to help you file an accurate tax return:

  • Taxable income.  Taxable income includes money you earn, like wages and tips. It also includes bartering, an exchange of property or services. The fair market value of property or services received is normally taxable.

Some types of income are not taxable except under certain conditions, including:

  • Life insurance.  Proceeds paid to you upon the death of an insured person are usually not taxable. However, if you redeem a life insurance policy for cash, any amount you get that is more than the cost of the policy is taxable.
  • Qualified scholarship.  In most cases, income from a scholarship is not taxable. This includes amounts used for certain costs, such as tuition and required books. On the other hand, amounts you use for room and board are taxable.
  • Other income tax refunds.  State or local income tax refunds may be taxable. You should receive a Form 1099-G from the agency that paid you. They may have sent the form by mail or electronically. Contact them to find out how to get the form. Report any taxable refund you got even if you did not receive Form 1099-G.

Here are some items that are usually not taxable:

  • Gifts and inheritances
  • Child support payments
  • Welfare benefits
  • Damage awards for physical injury or sickness
  • Cash rebates from a dealer or manufacturer for an item you buy
  • Reimbursements for qualified adoption expenses

Credits & Deductions IRS Website for Individuals


Child, Related Pages & Site Map  

IRS - Your Federal Income Tax - Publication # 17  

What counts as Income?

Gains & Losses

Adjustments to Income?


How to figure your tax?

Itemized Deductions Changes 2018
See Publication 17 Part 5 

IRS Mortgage Interest Deduction


Report Changes as they happen # 5152
Our webpage on reporting changes 

Report Changes as they happen

Changes should be reported within 30 days. Here's instructions.  If you've appointed us - instructions - as your broker, no extra charge, we can do it for you. 

Video Importance of Reporting Changes - Covered CA Video

IRS Video

3 comments on “Income or Expense or Deduction for AGI line 37? What counts as?

  1. Hi Steve,

    I am trying to calculate my income to see if I am eligible for Medi-cal or what I can buy through Covered California [with a certified agent, at no additional charge]. Would you please answer these questions for me:

    1) Does spousal support count as income?

    2) Do gifts count as income?

    3) What time period is taken into account when calculating one’s income?



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