Question About Social Security Benefits and Aca

[lmt125]

Hello,

As far as people that receive social security benefits because they have early retirement etc I'm not 100% sure if we have to include that as part of income since people do not pay taxes on that money. Any advice because it does show up on the list.

 

[peterlai]

Yes you have to add back social security income.

 

[lmt125]

Yes you have to add back social security income.

What do you mean add back?

 

[BeeSelective]

On line 37 agi does not include all ss income. Ss has to be added to that number. Other things have to be added as well, agi becomes magi. That is the magic number for subsidy calculation.

 

[lmt125]

On line 37 agi does not include all ss income. Ss has to be added to that number. Other things have to be added as well, agi becomes magi. That is the magic number for subsidy calculation.

What's the difference between modified adjusted gross income and agi? The thing is ss goes on that line that says ss.but it.doesn't transfer over to the income part.

 

[TxOnline]

Ann H has clearly explained this MANY times on the forum.
Just do a search for MAGI & read her posts.

 

[Yagents]

Line 37 + (line 20a - 20b) is basic formula for most.
Don't forget to take line 20a X 1.017 to factor in SS increase in 15'

BTW, this is a health insurance law, not a tax and income law

 

[BeeSelective]

What's the difference between modified adjusted gross income and agi? The thing is ss goes on that line that says ss.but it.doesn't transfer over to the income part.

If they were the same thing, there would be a need for both.

Sometimes, when we don't want to understand, we make it harder than it really is.

 

[Ann H]

Line 37 + (line 20a - 20b) is basic formula for most.
Don't forget to take line 20a X 1.017 to factor in SS increase in 15'

BTW, this is a health insurance law, not a tax and income law

The prior posters are correct, and Yagents just gave you the correct formula.

See the attached Form 1040, which I marked up. See how line 20a shows all of the Social Security income, but line 20b shows just the taxable portion. Well, you have to add back the non-taxable portion, which is 20a minus 20b.

 

[Yagents]

Oh boy, you just gave them the "bible" with that document