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February 5, 2021
Question

Is the deduction for SE Health Insurance added back in to determine your MAGI for market place insurance or is that above the line?

  • February 5, 2021
  • 1 reply
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1 reply

February 5, 2021

The MAGI used by the Marketplace is counted before the deduction of Self-employed Health Insurance.

 

Please read this Marketplace document on what's included in MAGI.

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February 5, 2021

So, should that say calculated BEFORE... So SE health insurance does NOT get added back in to determine the MAGI for the marketplace, correct?

February 9, 2021

According to the IRS, your MAGI is your AGI with the addition of the following deductions, if applicable:

  • Student loan interest.
  • One-half of self-employment tax.
  • Qualified tuition expenses.
  • Tuition and fees deduction.
  • Passive loss or passive income.
  • IRA contributions.
  • Non-taxable social security payments.

 

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