Modified adjusted gross income, or MAGI , is one of the calculations on the federal government's income to determine eligibility for various credit programs and tax assistance.
So what does this have to do with individual health insurance?
If you and your small business employees have individual policies of health insurance, it is an important measure to understand.
Note - This article is for our free eBook, small Owner's Manual company to change adjusted gross income to access the full resource, click here
MAGI and individual health insurance
If you are one of thousands of homeowners small business is unable to pay traditional group Medicare, you may pay your employees for all or part of their premiums, or send them to the place of the individual health insurance market. If this is the case, it is important that you understand MAGI.
Why?
Employees often ask their questions of the employer on health insurance options, terms, or direction. And as your employees purchase individual health insurance, they can ask you what MAGI is or how to calculate to determine if they are eligible for premium tax credits.
As such, it is important that you are a knowledgeable source and can both point them in the right direction and explain what MAGI is and how it is used.
Resources include MAGI
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How to calculate Modified Adjusted Gross Income (MAGI)
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Understand MAGI with these four amazingly simple advice
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Quick Guide: List of MAGI Deductions and adjustments
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A Quick guide When modified adjusted gross income is used
Conclusion
Understanding how to calculate MAGI help you understand eligibility for tax credits of premium and Medicaid eligibility, retirement savings deductions, tax credits for education, and tax credits for adoption.
What questions do you have about MAGI and individual health insurance? Download the PDF guide, or leave a comment below.
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