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Level 2
posted Jun 6, 2019 12:56:46 AM

MAGI on Form 8962 is incorrectly not adding back my rental losses so I am getting a big PTC refund because Turbotax is showing my income below poverty level.

My understanding that ACA/PTC MAGI is calculated by adding back rental losses as shown in this Intuit article: https://turbotax.intuit.com/tax-tips/irs-tax-return/what-is-the-difference-between-agi-and-magi-on-your-taxes/L7kHckNS3

"MAGI calculation

To calculate your modified adjusted gross income, take your AGI and add back certain deductions. Many of these deductions are rare, so it's possible your AGI and MAGI can be identical. According to the IRS, your MAGI is your AGI with the addition of the following deductions, if applicable:

  • Rental losses

"

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1 Replies
Expert Alumni
Jun 6, 2019 12:56:48 AM

For the purpose of determining the ACA premium tax credit, you are not required to add back your deductible rental losses to calculate your MAGI.

Please read this Marketplace document for more information:

https://www.healthcare.gov/glossary/modified-adjusted-gross-income-magi/