Hi,
If I take an AGI, say around 20k...........and have Self employment tax of around 4k.......... from what I understand you take the AGI and add in 50% of the SE Tax to get MAGI right? you don't deduct the 50% of the SE tax...
So MAGI would be 22k not 18k? for ACA healthcare MAGI calculations?
Just making sure I'm supposed to add SE tax at 50% to AGI to get MAGI not subtract thanks!
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why not just let TT figure that out? that accuracy is what you are paying for....
Please see this answer from MollsBBU.
Your tax return does not display your MAGI, you will need to calculate it by first checking your AGI. To locate your AGI:
Next, to calculate your modified adjusted gross income (MAGI), 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:
Hi thanks, just wondering do I add in SE Tax at 50% to AGI to get MAGI or subtract ? thanks!
No, The MAGI does not adjusted for 50 % SE tax.
IRS publication 590A, page 42 (worksheet 2-1) does NOT list adding back "one-half of self-employment tax." back into your AGI.
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