Ok, so I'm planning for retirement, and looking at MAGI income to withdraw to determine ACA subsidy. If I have a capital gains loss of $3000, can that lower MAGI income ? Can charitable contributions also lower MAGI ? Thanks.
Yes, allowed capital losses lower your AGI and hence your MAGI.
Charitable contributions that are taken on the 1040 in tax years 2020 and 2021 are adjustments that also lower your AGI/MAGI. Charitable contributions takeon on Schedule A as a deduction do not affect AGI/MAGI.
They moved the charitable contributions on 1040 to below AGI/MAGI in 2021, so they no longer lower your AGI/MAGI. AGI is line 11, charitable contributions is 12b. In 2020 charity was part of line 10, with AGI still line 11.Yes, allowed capital losses lower your AGI and hence your MAGI.
Charitable contributions that are taken on the 1040 in tax years 2020 and 2021 are adjustments that also lower your AGI/MAGI. Charitable contributions takeon on Schedule A as a deduction do not affect AGI/MAGI.
They moved the charitable contributions on 1040 to below AGI/MAGI in 2021, so they no longer lower your AGI/MAGI. AGI is line 11, charitable contributions is 12b. In 2020 charity was part of line 10, with AGI still line 11.
You're right. I hadn't noticed the change for 2021. Thanks.
So, if you projected a higher income for ACA subsidy, and your MAGI is lower due to capital loss ... Do you get a refund from the IRS if you paid more premium for ACA ? Where do you actually get the refund ? Thanks.