I understand that the gain won't be taxed because it is less than $500k (joint return) but don't know if it is counted as income for Affordable Care Act purposes.
No, capital gains from the sale of a house that are not included in your income do not factor into your Modified Adjusted Gross Income (MAGI) for purposes of the Affordable Care Act.
The following items are the only adjustments made to your adjusted gross income when calculating MAGI for Form 8962 for the Premium Tax Credit related to the Affordable Care Act.
- Add back tax-exempt interest
- Add back non-taxable social security benefits
- Add back foreign earned income and house expenses deducted with Form 2555
When calculating Medicaid eligibility under the Affordable Care Act, the following additional adjustments should be made.
- Exclude income from scholarships, grants or fellowships used for education purposes (except living expenses)
- Exclude certain American Indian and Alaska Native income
- An amount received as a lump sum is counted as income only in the month received (as opposed to increasing your calculated MAGI for the entire tax year)
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