Is social security income included in household income?


      As SweetieJean said, yes, Social Security income is included in household income for purpose of qualifying for a credit to help pay for insurance.

      Under the Affordable Care Act (ACA), you may be eligible for a tax credit that will help offset the monthly cost of insurance premiums.  The credit is the Advance Premium Tax Credit and applies to insurance purchased through the Health Insurance Marketplace.  Eligibility is based on your family size and income.  Here is an online calculator that can help you determine if you may qualify for a credit.

      The Marketplace application will ask for Modified Adjusted Gross Income (MAGI) to determine your eligibility for the credit, and for Medicaid and the Children’s Health Insurance Program (CHIP). For most people, you can estimate your MAGI by starting with your household’s Adjusted Gross Income (AGI).  Your AGI does include self-employment income.

      As an example, on the 2012 Form 1040, AGI is on Lines 37 and 38. MAGI is generally your household’s AGI plus any non-taxable Social Security, non-taxable interest, and foreign earned income and housing expenses for Americans living abroad.  You will want to use projected numbers for 2014 when filling out the application.

      Find more information on the income calculation

      • I am a social security recipient with a working spouse. It looks like my little $6,200 income put us into a higher tax bracket and we owe federal taxes.  How can this be right?  I thought Social Security benefits were not taxable.
      • 0-85% of your Social Security is taxable, depending upon your other income. See this:
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