MAGI and Obama-plans 2022 !

[Mike Siegal]

Hey Buds,

Doing my Tax Returns i noticed that ACA plans are now based on MAGI (a modified gross income amt) and not 'net income' as they were just a couple of years ago.

This means ACA calculates your premium based on 'adjusted gross income'--- PERIOD

In the past it was NET INCOME based, now its GROSS INCOME based.

This is a Big Red Flag for business owners who DEDUCT everything they can to get to a LOWER NET. --- (deductions AND expenses apparently don't matter to ACA).

• Am i getting this Right ???
• Thoughts /Comments?

 

[Mike Siegal]

MIS. Articles from the net

Modified Adjusted Gross Income under the Affordable Care Act - UPDATED WITH INFORMATION FOR COVID-19 POLICIES - UC Berkeley Labor Center

https://www.healthaffairs.org/do/10.1377/forefront.20210311.725837/full/

 

[Yagents]

Hey Buds,

Doing my Tax Returns i noticed that ACA plans are now based on MAGI (a modified gross income amt) and not 'net income' as they were just a couple of years ago.

This means ACA calculates your premium based on 'adjusted gross income'--- PERIOD

In the past it was NET INCOME based, now its GROSS INCOME based.

This is a Big Red Flag for business owners who DEDUCT everything they can to get to a LOWER NET. --- (deductions AND expenses apparently don't matter to ACA).

• Am i getting this Right ???
• Thoughts /Comments?

Its always been MAGI since 2014 when ACA started.

And if your self employed, the deductions and expenses spill down from your Schedule C, and lowers your MAGI on your 1040.

 

[Mike Siegal]

Its always been MAGI since 2014 when ACA started.

MAYBE my Software is screwed...
but software says MAGI which is line 11 (which has no deductions). ITS A GROSS Figure.

 

[Yagents]

Look at your Schedule C or Schedule 1.
Look for the last line showing NET profit or income (that is after expenses).
This number flows over to your Line 10 on 1040.
Your schedule A tax deductions occur AFTER your AGI is determined.
Taxable income, line 15 is the amount you pay taxes on.
Tax forms used may vary based on type of income you receive.

 

[kgmom219]

Everything Y said.

And here's a link: https://www.healthcare.gov/income-and-household-information/income/#magi

 

[Mike Siegal]

Working on it....