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Financial Planning / Tax Strategies
|Subject: Re: More Obamacare Confusion||Date: 9/25/2013 4:16 PM|
|Author: Wradical||Number: 119208 of 125003|
As Peter noted, there are different places in the Code where Modified Adjusted Gross Income is defined differently.
Peter referred to " I'll assume we're talking about MAGI for purposes of the premium credit. If that's not what we're talking about, elaborate further and I'll look into things a bit more.
The source is Internal Revenue Code Section 36B(d)(2)(B), which says.."
(What Peter posted.)
What I THOUGHT might be the applicable reference, being Obamacare related, is in Regs. 1.5000A-5(c), relating to the "individual insurance mandate." That says:
Final regs, applicable for months beginning after Dec. 31, 2013, 4define modified adjusted gross income for purposes of the requirement that individuals maintain a minimum level of health insurance coverage.
For purposes of the requirement that “applicable individuals” will have to maintain a minimum level of health insurance coverage (“minimum essential coverage”) after 2013, the term “modified adjusted gross income” will mean adjusted gross income increased by—
... any amount excluded from gross income under Code Sec. 911 (the foreign earned income exclusion for U.S. citizens or residents living abroad, and
... the amount of any tax-exempt interest received or accrued by the taxpayer during the tax year.
For this purpose, there's no adjustment for untaxed Social Security benefits.
The question posed related to addback of the deductions for IRAs and 518(c) plans, if applicable. I don't see that here, either.
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