Modified Adjusted Gross Income (MAGI)

safeThe last the last requirement that you need to qualify for a premium tax credit is for your Modified Adjusted Gross Income (MAGI).  Your MAGI is your adjusted gross income or (AGI) plus

  • any tax free social security income (line 20a minus 20b on form 1040)
  • any tax free interest income (line on 8b of form 1040)
  • Foreign earned income & housing expenses for Americans living abroad (calculated on form 2555)

I recommend that you review your bond portfolio to see if you have any tax free interest income.  If your portfolio looks like mine, then you are ready to find out what sort of tax credit you qualify for.

In most cases a persons Modified Adjusted Gross Income (MAGI) will be the same as that person’s Adjusted Gross Income (AGI).

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