The Federal Government determines your eligibility for a premium subsidy and penalties for not having insurance on your Modified Adjusted Gross Income (MAGI). We get questions on this all the time. To help simplify things (as much as taxes can be simplified) here is a quick explanation. (Please note, we are NOT tax professionals, this is NOT tax advice.)
The ever famous disclaimer: This just an example. We are not tax advisors, this is NOT tax advise! Please contact your tax professional with any questions. You can also find more detailed information here: UC Berkley Labor Center
What is MAGI?
Modified Adjusted Gross Income is your adjusted gross income (AGI) plus a few specific deductions. In order to find your modified adjusted gross income, you first need to find your adjusted gross income.Find Your AGI
Your adjusted gross income is your total or gross income minus certain deductions. You can find it on:- Form 1040, line 38
- Form 1040A, line 22
- Form 1040EZ, line 4
- Form 1040NR, line 37
The Modified
Here is where the “modified” part comes into play. To find your MAGI you’ll have to add deductions some deductions back into your AGI:- Non-taxable Social Security benefits
- Tax-exempt interest
- Income from the foreign earned income exclusion
- Qualified Savings Bond interest income exclusion
- A few other things that are even rarer. . .
The ever famous disclaimer: This just an example. We are not tax advisors, this is NOT tax advise! Please contact your tax professional with any questions. You can also find more detailed information here: UC Berkley Labor Center
Author, Tiffany Geiger, President
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