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!
The list of Countable income might not show on a Smart Phone. If you don’t see it, use this prior link.
View list directly, not in the inline frame
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
What counts as income?
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 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.
(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
Steve Shorr - Covered CA Certified Agent -
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How to use our FREE Quote Engine, Subsidy Calculator and get the MOST from the experience.
When you get a FREE quote, you can also see the benefits, view actual brochures, MD and Hospital Lists all ONE easy process with no obligation & it can be anonymous. Enter your zip code, date of birth, family - household taxation relationships (MAGI - Definition), Estimated MAGI - Modified Adjusted Gross Income for the upcoming - current year. Last years tax return only gives an idea so that Covered CA can approve your advance tax credit to help pay premiums.
This website and are individual consultation are provided to you FREE of Charge! We are paid by Covered CA and/or the Insurance Companies to help you. When you fill out the Covered CA ONLINE Application, just appoint us as your agent under Find Help in the Upper Right Hand Corner so that we get paid for helping you. Click here for screen shots for more detail of how to do it. If you prefer, you can pay us a consultation fee in lieu of appointing us as your agent, for educational services only.
You can then see all the quotes on the exchange, showing the Cost Share Reduction - Enhanced Silver if available, subsidy - tax credit amount and your net premium. If you click "Off Exchange" you will see more plans and companies which may have larger provider lists. Scroll down for more screen shots.
Then click on "View Plan Details" - "View Doctor's & Providers" - to compare and get more information. Please note that the quote engine does not show enhanced silver, but shows silver at 70%. Check our chart for the better silver coverage. To apply, click on apply now or use the links in the right hand column, ON THIS PAGE, but it will have you redo the quote for that specific company. The price is the SAME, no matter if you use us, go direct to Covered CA or the Insurance Company, as mandated by law! If applying through Covered CA, be sure to sign the form to appoint us as your agent. It's not all the easy to figure out how to do it on their website.
If you have any questions email [email protected] or call us 310.519.1335
Video Importance of Reporting Changes - Covered CA Video
Denial of benefits and possible criminal charges if you don't report changes in income!
Child, Related Pages & Site Map
- Income Chart – Line 8b 1040 Covered CA MAGI
- Questions? on Income Covered CA Application
- 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
- Military – Armed Forces
- 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?