How to Calculate MAGI (Modified Adjusted Gross Income) for Health Insurance

How do you calculate your MAGI (Modified Adjusted Gross Income) for Marketplace Insurance? Check out this video to learn more or call us at iHealthBrokers today at 888-410-0344. Our services are 100% Free!

★☆★ABOUT THIS VIDEO★☆★

The first thing you need to understand is the difference between your AGI (Adjusted Gross Income) and your MAGI. Your AGI is very important for tax purposes. It’s basically your gross income minus deductions. Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. You are able to either itemize your deductions or take the standard deduction. Once you’ve subtracted these deductions, you are left with your AGI. This is where you have a little wiggle room. If you are planning on enrolling on insurance through the marketplace, you may want to work with an accountant to ensure your AGI falls within the proper bracket within the marketplace. A lower income range may make you eligible for a premium tax credit.

These tax credits will give you a savings of several hundred per month or more dependent upon your household size. So, as far as affordability, eligibility for a premium tax credit makes a huge difference.

So, first and foremost you’re going to want to lower your AGI. Try talking to an accountant or possibly contributing to a Roth IRA. You may also be able to lower your AGI by picking the right health insurance plan. If you pick a plan with a Health Savings Account (HSA), you can contribute to that HSA and lower your AGI. In 2021, an individual can contribute a max of $3,600 to a Health Savings Account and a family can contribute a max of $7,200.

An HSA is your money in a special account. The account is interest bearing and that interest is tax free. As long as you use the money within your account, it is tax free. The money rolls over from year to year and if you hold on to the account until you are 65, you can convert it to a basic retirement account and use it for whatever you want.

BUT, they’re not for everyone. HSAs are a great financial option, but they are only available with high deductible health plans. Your deductible is the amount that you have to pay out of pocket before your insurance kicks in. Once you’ve met your deductible, your insurance will pay for a portion of the costs and you are responsible for copays and coinsurance. If you have major services, eventually, you may hit your out of pocket maximum and your insurance will pay 100% of the costs for covered benefits.

So, now that you understand AGI, how do you calculate MAGI? Honestly, for most people, the number is going to be the same! There are a few minor deductions to be added back which are detailed on healthcare.gov.

If your information should change at anytime, it is very important that you update Healthcare.gov. You can do so online, in person or via phone but NOT via mail. Should you have any changes to your income, household size or residency, your eligibility for a premium tax credit may change. Again, this may result in you leaving money on the table or having to pay those tax credits back come tax time!

If you have any further questions, please feel free to contact us here at iHealthBrokers at 888-410-0344 or https://ihealthbrokers.com/


👇SUBSCRIBE TO iHealthBroker's CHANNEL NOW👇
https://www.youtube.com/channel/UC5jc...

★☆★CHECK OUT OUR OTHER VIDEOS★☆★
Health Insurance 101
   • Health Insurance 101  

HSA & HDHP
   • Health Savings Accounts & High Deduct...  

Healthcare.gov
   • Marketplace Insurance: Signing Up for...  

===================================
Healthcare.gov Income Brackets
https://www.healthcare.gov/lower-costs/

Important Info for MAGI
https://www.healthcare.gov/income-and...

Essential Benefits
https://www.healthcare.gov/coverage/w...

===================================
★☆★CHECK US OUT ★☆★

WEBSITE: https://ihealthbrokers.com/
PHONE NUMBER: (888) 410-0344
F A C E B O O K:   / ihealthbrokers  

===================================

Give us a call or leave a comment below and we'll do our best to help! Make sure to "Like" and "Subscribe" today! modified adjusted gross income