Does ACA subsidy consider tax free income?

Forum|Forum|3 years ago
May 10, 2023
1 reply
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ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

Its excluded so even when you have a W2 (most of mine no longer get a W2 to include it anymore), you put it on the return then it backs it back out again, so it wouldnt end up included in the MAGI of the return.

Just-Lisa-Now-

Intuit Community Champion

What kind of "tax free" income? The 8962 uses Modified AGI, so if social security is in the mix, it uses the gross amount of SS, not the taxable amount when computing the PTC.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

G

GretaAuthor

Level 7

Client receives Medicaid Waver (big) payments for looking after a handicapped individual. This is not taxable income. It's the first time I've encountered this. Does this taxfree income not count in calculating the ACA subsidy? Software seems to do that.

Just-Lisa-Now-

Answer

Intuit Community Champion

Its excluded so even when you have a W2 (most of mine no longer get a W2 to include it anymore), you put it on the return then it backs it back out again, so it wouldnt end up included in the MAGI of the return.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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