The more I read up, the more confused I get about MAGI.
The Turbo Tax Modified Adjusted Gross Income Worksheet, calculated MAGI for Passive Gain Loss (Rental Property) and in this worksheet it omited our Social Security payments completely as income. Thus our MAGI is much lower that our AGI.
I need to understand MAGI For Medicare IRMMA price seeting. In this Modified Adjusted Gross Income Worksheet, calculation, it excluded Social Security Income. But when I read other descriptions of deductions to add -back in, I find several references that say add back in "Tax-exempt SS income" (Which is 15% for us) So for IRMMA purposes, should I be adding in the non-taxed SS payment amount?
Secondly, in adding back deductions for "tax-exempt interest", to calculate MAGI, would the gain a Roth IRA withdrawal be considered "tax-exempt interest" ? I know Roth IRA distributions are not taxable, and clearly there is a basis and a gain amount in Roth accounts, but is the Roth "Gain" (which is tax-exempt) considered "interest" for MAGI calculation purposes?
Thirdly, when Medicare goes int tax records to get prior year MAGI to determine IRRMA rate, where are they actually pulling our MAGI amount from, considering its not a line item on the 1040?
