ACA MAGI and Social Security

[axeman462]

I'm confused. I have a client who's husband collects Social Security, and has a little rental income. Together they add up to $3,300 (2,800 in SS and $500 in rental income).

But their CPA insists their MAGI is only $14,000/year so she doesn't qualify for ACA Subsidies.

What am I missing?

 

[Jim Wright]

Depending on how they file, the CPA is probably including deductions

They usually know the rules pretty well but it might be worth a call to the CPA to find out.

 

[myinsurebiz]

I'm confused. I have a client who's husband collects Social Security, and has a little rental income. Together they add up to $3,300 (2,800 in SS and $500 in rental income).

But their CPA insists their MAGI is only $14,000/year so she doesn't qualify for ACA Subsidies.

What am I missing?

What kind of Social Security?

 

[axeman462]

What kind of Social Security?

old people social security

 

[axeman462]

Depending on how they file, the CPA is probably including deductions

They usually know the rules pretty well but it might be worth a call to the CPA to find out.

and those deductions will actually keep someone from getting ACA subsidies?

 

[yankee466]

I've seen some people confuse MAGI with AGI. The entire amount of the SS check is included in MAGI, and not just the taxable part.

Barring rental expenses or other losses off setting the income, you are showing a MAGI of $39K

I'll ask to see their last 1040 to try to help.

 

[Jim Wright]

and those deductions will actually keep someone from getting ACA subsidies?

Yes

 

[kstein]

Depreciation on the rental might offset income. Tons of CPAs bitch this which is kind of embarrassing to be honest.