Three steps to calculate your tax 2014 Health Reform Subsidy

Three steps to calculate your tax 2014 Health Reform Subsidy -

The year 2014 is the beginning of some exciting changes. People buying health insurance through an exchange can qualify for financial aid if their income is more than 400 percent of the federal poverty line. How do you know if you qualify for tax credits of premium? It is not difficult to know. Just calculate your household Modified Adjusted Gross Income (MAGI of) to know how you really won. Here's how:

Step 1: Calculate the gross income (GI)

Gross income is every penny, dime and dollar earned in a given year. So add up all. Take into account the wages, interest, investment income, dividends, rental income and royalties, capital gains, unemployment and child support

Step 2 :. Calculate the adjusted gross income (AGI)

adjusted gross income is household income before applying detailed or standard deductions, exemptions and credits. So take the GI (found in step 1) and subtract all eligible deductions. Contributions to IRA, moving expenses, alimony paid, self-employment taxes and student loan interest deductions are all eligible

Step 3 :. Calculate Modified Adjusted Gross Income (MAGI)

[revenubrut

Adjusted Modified AGI is a household and all tax-exempt interest income. Do not worry if your AGI is your MAGI. This is common. Take AGI (found in step 2) and add all tax-exempt interest income. Interest income exempt include deductions for IRA contributions, deductions for student loan interest and tuition, certain foreign income, interest of employee savings bonds used to pay fees higher education and the adoption fee paid by the employer are tax-exempt interest income.

The steps for determining eligibility for grants and what you might get back in 2014. Check out easy to use tool GoHealth calculator grant health insurance to determine what the grant you are eligible and what you can expect to pay premiums.

Tweet