Dear Tax Experts,
Would really appreciate some guidance in calculating our 2019 MAGI for the Affordable Care Act. We would be eligible to get a Covered CA subsidy, if we could reduce the MAGI by including contributions made to our retirement accounts.
Details:
CA Residents
Married Filing Jointly 2019 Tax Return
No dependents, both over 50 years of age
Not covered by any employer retirement plan
I have 1099-Misc income and W-2 income.
Spouse only has interest and dividend income.
MAGI without IRA contributions: $79,000
If I contribute $9,000 (25% of my 1099 income) to a SEP IRA and $6,500 to a traditional IRA, would these contributions be included to reduce the income when calculating MAGI for the healthcare subsidy?
Many, many thanks
Anu
@dmertz @TaxGuyBill
