Frequently Asked Questions
The government utilizes your household's combined Modified Adjusted Gross Income, or MAGI as a basis to determine your eligibility for a government health insurance subsidy under the Affordable Care Act.
For most people, MAGI is the same as your Adjusted Gross Income (entered on your most recent tax return) and includes: wages, taxable interest and other taxable income, dividends, alimony and unemployment compensation – after deductions are made for some self-employed expenses, student loan interest, tuition, moving expenses, among other things. However, for others, certain amounts may be added to the Adjusted Gross Income to achieve the MAGI, such as certain tax-exempt interest received during the year.
For 2014, you can estimate your Modified Adjusted Gross Income, by finding the Adjusted Gross Income listed on your most recent federal tax return and adjusting it based on any changes (additional income or reductions) you expect to see in your income for 2014. Remember, it’s your household’s 2014 (not 2012 or 2013) MAGI that determines your eligibility for a subsidy. A final decision on how much subsidy assistance you may receive in 2014 is made only by the government exchange authority in your state.
To calculate your MAGI we encourage you to view this fact sheet developed by the UC Berkeley Labor Center.
Please note that eHealthInsurance is not a law firm or tax advisor and is not providing legal or tax advice regarding Modified Adjusted Gross Income. Consult with your own legal counsel or tax advisor if you have questions regarding the determination of your MAGI.