This might be a dumb question. I am working on the math to see if DW and I can apply for an ACA policy for 2019.
Below numbers are for example only:
Let's say our AGI is $70,000 with no deduction. MAGI will end up higher than the $65,000 limit for family of 2. ACA Premium without subsidy is $16,000.
The premium amount that exceeds 7.5% of AGI ($5250) is $10,750. Deduct that from AGI gives new AGI $59,250. It is now lower than the limit.
So, when is MAGI actually calculated? With the new AGI number, the new MAGI would be lower than the cliff.
Below numbers are for example only:
Let's say our AGI is $70,000 with no deduction. MAGI will end up higher than the $65,000 limit for family of 2. ACA Premium without subsidy is $16,000.
The premium amount that exceeds 7.5% of AGI ($5250) is $10,750. Deduct that from AGI gives new AGI $59,250. It is now lower than the limit.
So, when is MAGI actually calculated? With the new AGI number, the new MAGI would be lower than the cliff.