How To Figure Your MAGI
Modified Adjusted Gross Income
Calculating “INCOME”
When you apply for a “Subsidy” you’ll need to estimate your income (before taxes) for the year in which you’re applying for insurance. If you are not sure, you’ll have to make your best estimate. We recommend you speak with your accountant to get your “Modified Adjusted Gross Income” calculation.
Modified Adjusted Income for most folks will be the Adjusted Gross Income on line 37 of your 1040, or 21 of your form 1040A or line 4 of your 1040EZ of your tax return.
Add:
♦ You and your spouse’s income, if you’re married and will file a joint tax return
♦ Any dependents who make enough money to be required to file a tax return
You’ll need to include:
♦ Wages
♦ Salaries
♦ Tips
♦ Alimony – After 1/1/2019 DO NOT include.
♦ Unemployment compensation
♦ Self Employed or business (generally the amount of money you take in from your business minus your business expenses)
♦ Social Security payments, including disability payments – but not Supplemental Security Income (SSI)
♦ Retirement income, Investment income, pension income, rental income, prizes, awards, gambling winnings
♦ Generally withdrawals from an IRA (Not Roth IRA.) See IRS Form 8606
♦ Withdrawals from a 401k plan (less distributions from a Roth Account) See IRS Pub. 575
♦ Excluded (untaxed) foreign income
♦ Capital Gains
Don’t include:
♦ Gifts
♦ Child support
♦ Supplemental Security Income (SSI)
♦ Veterans’ disability payments
♦ Workers’ compensation
♦ Qualified withdrawals from a Roth IRA. See IRS Pub. 590
♦ Proceeds from loans (like student loans, home equity loans, or bank loans)
We suggest you refer to your federal income tax return to get a quick estimate of your AGI. On your tax return, please refer to:
♦ Line 4 if you filed a Form 1040EZ
♦ Line 21 if you filed a Form 1040A
♦ Line 37 if you filed a Form 1040
Keep in mind, the subsidies are based off the “Household Modified Adjusted Income.”
We recommend you speak with your accountant to get your “Modified Adjusted Gross Income” calculation.
Disclaimer: The material in this site is provided for educational purposes only and does not substitute consultation with an Attorney or Accountant. We do not guarantee the accuracy or completeness of the definitions or any information or other items within this website. Any inclusions of incorrect data or omissions of correct data is unintentional. We will make periodic changes to these materials at any time and make no commitment to update the information contained herein, although we will continue to update as often as possible. The Nevada Insurance Enrollment Marketplace shall not assume any responsibility or liability for any such inadvertent errors or inaccuracies, and shall have no obligation to honor transactions or information affected by such inaccuracies.
