line.2a Modified AGI Worksheet
IRS # 8962 Instructions Page 6
Publication #915 Social Security Taxation
SSA 1099 - Social Security Benefit Statement
SSA 1099 – Social Security Benefit Statement
Social Security Benefits - Lesson from IRS
Social Security Benefits – Lesson from IRS

How does one add back in social security benefits that were not included in income on line 20 of their 1040?

When calculating the Premium Tax Credit, (Subsidy)  MAGI-Modified Adjusted Gross Income (AGI)  is the bottom line number on line #37 on your 1040 tax return then add back in the difference between line 20a and 20b of your 1040.

See the explanation, screen shots and references at right & below to better understand out it all works.  Please note that neither I nor Covered CA give tax advise.  Here’s where Covered CA’s advise caused someone to pay back $13k in subsidies.

Check out Medi-Gap – Supplemental Coverage – Year around enrollment.  Medicare Advantage during Open or Special Enrollment.

Summary of what is taxable (SSA.Gov)

Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits.

No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. If you:

  • file a federal tax return as an “individual” and your combined income* is
    • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
    • more than $34,000, up to 85 percent of your benefits may be taxable.
  • file a joint return, and you and your spouse have a combined income* that is
    • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits
    • more than $44,000, up to 85 percent of your benefits may be taxable.
  • are married and file a separate tax return, you probably will pay taxes on your benefits.


Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your “combined income

Each January you will receive a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits you received in the previous year. You can use this Benefit Statement when you complete your federal income tax return to find out if your benefits are subject to tax.   Request an SSA 1099  ♦  SSA.Gov ♦ Page 14 Retirement Guide Pub. 10035 ♦  26 US Code §86 Taxable Income Social Security

Social Security Payments, taxable and non-taxable, line 20 a & b 1040, what applies to MAGI-Modified Adjust Gross Income for Covered CA  subsidies – tax credits?

IRS Social Security Benefits Worksheet for 1040 lines 20a & 20b

This is a technical page – Please see our MAGI page for an introduction.

We are not CPA or Attorneys and are not giving tax or legal advise.  That’s why we link to the actual law, IRS or Covered CA publications.

IRS #1040 Form – Social Security Benefits

Use the Taxpayer’s Modified AGI Worksheet—Line 2a (Page 4) to determine your modified AGI.    Instructions 8962


line.37 Adjusted Gross income
Line 37 Adjusted Gross Income – Click to view our MAGI page for more detail

C      Social Security – Covered CA – MAGI???

Code of FEDERAL Regulations – IRS Income Taxes – 1.36B 1
Excerpt of MAGI CFR 1.36 B

(2) Modified adjusted gross income means adjusted gross income (line 37) within the meaning of section 62 (definition of AGI)  increased by—

(iii) Social security benefits (Line 20, a & b  above)

   [Social Security Website]   ♦  [Publication 915 – Social Security Benefits – How to prepare your taxes]

not included in gross income under section 26 USC § 86(d) repayments for prior year over payment?

[Might not apply to Medi Cal Eligibility?]
Excerpt from UC Berkeley
Footnote 4

BerkeleyNon-taxable Social Security benefits (Line 20a minus 20b on a Form 1040

Footnote 4 Social Security benefits” includes disability payments (SSDI), but does not include Supplemental Security Income (SSI), (SSI gives cash assistance to people with limited income and resources who are age 65 or older, blind or disabled. )SSA.Gov   which should be excluded Berkley   26 USC 86 D )

Special enrollment periods no longer will be available for:

  • Consumers who were affected by Social Security income tax errors;   Learn More ⇒CA Health Line – Health 1.20.2016

Issue Number:    IRS Tax Tip 2016-18

Inside This Issue

Your Social Security Benefits May be Taxable

If you receive Social Security benefits, you may have to pay federal income tax on part of your benefits. These IRS tips will help you determine if you need to pay taxes on your benefits.

  • Form SSA-1099.  If you received Social Security benefits in 2015, you should receive a Form SSA-1099, Social Security Benefit Statement, showing the amount of your benefits.
  • Only Social Security.  If Social Security was your only income in 2015, your benefits may not be taxable. You also may not need to file a federal income tax return. If you get income from other sources you may have to pay taxes on some of your benefits.
  • Free File.  Use IRS Free File to prepare and e-file your tax return for free. If you earned $62,000 or less, you can use brand-name software. The software does the math for you and helps avoid mistakes. If you earned more, you can use Free File Fillable Forms. This option uses electronic versions of IRS paper forms. It’s best for people who are used to doing their own taxes. Free File is available only by going to
  • Interactive Tax Assistant.  You can get answers to your tax questions with this helpful tool and see if any of your benefits are taxable.  Visit and use the Interactive Tax Assistant tool.
  • Tax Formula.  Here’s a quick way to find out if you must pay taxes on your Social Security benefits: Add one-half of your Social Security to all your other income, including tax-exempt interest. Then compare the total to the base amount for your filing status. If your total is more than the base amount, some of your benefits may be taxable.
  • Base Amounts.  The three base amounts are:
    • $25,000 – if you are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from your spouse for all of 2015
    • $32,000 – if you are married filing jointly
    • $0 – if you are married filing separately and lived with your spouse at any time during the year

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on

Additional IRS Resources:

IRS YouTube Videos:


Child & Sibling Pages in MAGI – Modified Adjusted Gross Income – Line 37 » MAGI – FAQs – What counts as Income? Section

More in our Medicare – Social Security Section of this website

Polk Family has to pay back $13k in tax credits – subsidies – Insure Me  Wrong advise from Covered CA

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