Now that Open Enrollment is coming soon, you’ll be asked to share your expected modified adjusted gross income (MAGI) in order to find out if you qualify for subsidies or for low or no-cost insurance.
What is Modified Adjusted Gross Income?
In general, your MAGI is the total of your household’s adjusted gross income (AGI) plus any tax-exempt interest income you may have such as untaxed foreign income and non-taxable Social Security benefits. Moreover, it is a figure used to determine eligibility for premium tax credits and other savings for Marketplace health insurance plans and for Medicaid and the Children’s Health Insurance Program (CHIP) as well.
Here’s how to calculate your Gross Income (GI), Adjusted Gross Income (AGI) and your Modified Adjusted Gross Income (MAGI):
Gross Income (GI) Calculation
Your gross income is the sum of all the money you earn through interests, dividends, wages, business income, capital gains, rental and royalty income, farm income, unemployment, and alimony. This typically includes salary, income from investments, interest earned, and simply any income you made through business, trade, or investments.
Adjusted Gross Income (AGI) Calculation
Now that you have your gross income calculated, you just have to subtract any qualified deductions from your gross income to get your AGI. Deductions may include moving expenses, alimony paid, IRAs, self-employment taxes, and loan interests.
Modified Adjusted Gross Income (MAGI) Calculation
To “modify” your AGI, you just have to do some addition. Your MAGI is your AGI plus your untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. Usually, your MAGI is the same or very close to your AGI.
Get subsidies and save more.
Health Plans In Oregon wants to help you grasp the most vital factor in tallying how much money you can save on your insurance: your income. Since 2006, we have been helping Oregonians in getting low-cost and apt health plans. You can reach us thru 503-928-6918 or simply send an email to info@healthplansinoregon.com for all inquiries on healthcare plans and Medicare. Help is always free at Health Plans In Oregon.
Also see:
Preventive Care Benefits | Covered By Your Health Plan
Student Health Insurance – Health Plans In Oregon
