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Deductions & credits
According to the following IRS site, Your Social Security including disability payments may be taxed if you earn income from other sources and your MAGI exceeds the base amount for your filing status. To determine this, take 50% of the Social Security benefits you received and add that to all your other income. If your total is greater than the following base amount, your Social Security benefits may be taxable:
• $32,000 for married filing jointly
• $25,000 for single, married filing separately (who lived apart during the entire year), head of household, and qualifying widow(er) with dependent child
• $0 for married filing separately (who lived together during the year)
in answer to your question, Magi is the total of your income + 1/2 of your disability payments + deductions that are added back to your income amount. Those deductions are listed in that link. Magi is the income that is used in Obamacare calculations.
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