Social Security, when calculating the Premium Tax Credit, (Subsidy) take the MAGI-Modified Adjusted Gross Income (AGI) is the bottom line number on line 8b #37 on your 1040 tax return then add back in the difference between line 5a & 5b of your 1040.
Please note that neither I nor Covered CA give tax advice. Here’s where Covered CA’s advise caused someone to pay back $13k in subsidies.
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.
+ 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
- Publication 915 Social Security and Equivalent Railroad Retirement Benefits
Turbo Tax Video How to Claim Tax Credit
What Is the Premium Tax Credit (PTC)?
Who Must File Form 8962
Who Can Take the PTC
Terms You May Need To Know
Minimum Essential Coverage (MEC)
Individuals Not Lawfully Present in the United States Enrolled in a Qualified Health Plan
Determining the Premium for the Applicable Second Lowest Cost Silver Plan (SLCSP)
Allocating Policy Amounts for Individuals With No One in Their Tax Family
Allocation of Policy Amounts Among Three or More Taxpayers
Alternative Calculation for Year of Marriage
Self-Employed Health Insurance Deduction and PTC ...
Free help to file taxes VITA
Volunteer Income Tax Assistance
Steve Shorr - Covered CA Certified Agent -
No Charge for Complementary Year Around Service -
Same price as Covered CA or Direct with Insurance Company
Get instant Quotes, including APTC Subsidy Calculation
Set up time for phone, Skype or face to face meeting
Video on how great agents are
Free Instant Quotes - Including Subsidy Calculation
Same Price as Covered CA or Direct with Insurance Company!
Guaranteed Issue - No Pre X Clause
Life Insurance Buyers Guide
Child & Sibling Pages in MAGI – Modified Adjusted Gross Income – Line 37 »
More in our Social Security Section of this website
and here[Social Security Website] ♦ [Publication 915 – Social Security Benefits – How to prepare your taxes]
Polk Family has to pay back $13k in tax credits – subsidies – Insure Me Kevin.com Wrong advise from Covered CA