MAGI computation for Obamacare subsidy
Hi, Planning to apply for premium subsidy for my 2018 health insurance. I had my insurance thru the exchange for 2 years but never applied for subsidy due to higher income. However, my income would be much lower for 2018 and will now be eligible for the subsidy.
upon checking numerous sites, I am confused how MAGI is computed. Some sites only mention these 3 things to add back from AGI to arrive at MAGI (do not mention IRA contributions to be added back):
"Any amount excluded from gross income in section 911 (Foreign earned income and housing costs for qualified individuals)
Any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax
Any amount equal to the portion of the taxpayer’s social security benefits (as defined in Section 86 (d)) which is not included in gross income under section 86 for the taxable year. (Any amount received by the taxpayer by reason of entitlement to a monthly benefit under title II of the Social Security Act, or a tier 1 railroad retirement benefit.)"
some argues that IRA contributions should be added back to AGI to get MAGI.
"to calculate your modified adjusted gross income, take your AGI and add back certain deductions. Many of these deductions are rare, so it's possible your AGI and MAGI can be identical. According to the IRS, your MAGI is your AGI with the addition of the following deductions, if applicable:
Student loan interest
One-half of self-employment tax
Qualified tuition expenses
Tuition and fees deduction
Passive loss or passive income
IRA contributions, taxable social security payments
The exclusion for income from U.S. savings bonds
The exclusion under 137 for adoption expenses
Rental losses"
Sorry if this was already discussed but could not find anything using the search function. Hope someone can help to clarify this. Thanks
