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Just need clarification on figuring out MAGI . To keep it simple If i am self employed and make 100k in wages tips salaries or lets just say commissions from carriers make it more simple.
lets say i have a solo 401k i will contribute 25k and a IRA another $3000. I can deduct 50% self employment tax which could be about 5K just approximating, health insurance deduction another 5k
So if i am calculating correctly my MAGI should be about 62k 100k-33k
According to the labor center My MAGI deductions below
Deduct:
• Certain self-employed expenses*5 <Note> below
• Student loan interest deduction
• IRA deduction (traditional IRAs)
• Moving expenses
• Penalty on early withdrawal of savings
• Health savings account deduction
• Alimony paid
• Domestic production activities deduction
• Certain business expenses of reservists,
ADD CERTAIN INCOME:
• Non-taxable Social Security benefits4 (Line 20a minus 20b on a Form 1040)
• Tax-exempt interest (Line on 8b on a Form 1040)
• Foreign earned income & housing expenses for Americans living abroad (Form 2555)
***5 Deductible part of self-employment tax; SEP, SIMPLE, and qualified plans; health insurance deduction. Note that the IRS states that "if you purchase coverage in the individual Marketplace and claim the premium tax credit on your tax return, the amount of the premium reimbursed by the credit may not also be deductible."
here is PDF for MAGI from Labor center
http://laborcenter.berkeley.edu/pdf/..._summary13.pdf
lets say i have a solo 401k i will contribute 25k and a IRA another $3000. I can deduct 50% self employment tax which could be about 5K just approximating, health insurance deduction another 5k
So if i am calculating correctly my MAGI should be about 62k 100k-33k
According to the labor center My MAGI deductions below
Deduct:
• Certain self-employed expenses*5 <Note> below
• Student loan interest deduction
• IRA deduction (traditional IRAs)
• Moving expenses
• Penalty on early withdrawal of savings
• Health savings account deduction
• Alimony paid
• Domestic production activities deduction
• Certain business expenses of reservists,
ADD CERTAIN INCOME:
• Non-taxable Social Security benefits4 (Line 20a minus 20b on a Form 1040)
• Tax-exempt interest (Line on 8b on a Form 1040)
• Foreign earned income & housing expenses for Americans living abroad (Form 2555)
***5 Deductible part of self-employment tax; SEP, SIMPLE, and qualified plans; health insurance deduction. Note that the IRS states that "if you purchase coverage in the individual Marketplace and claim the premium tax credit on your tax return, the amount of the premium reimbursed by the credit may not also be deductible."
here is PDF for MAGI from Labor center
http://laborcenter.berkeley.edu/pdf/..._summary13.pdf
