First you will need to determine what your Modified Adjusted Gross Income (MAGI) is. In order to do this, you will need to consult your prior year tax return. If you did not file a prior year tax return you will not be eligible for a subsidy. To determine your Modified Adjusted Gross Income, locate your Adjusted Gross Income (AGI) from line 38 of your Form 1040; line 22 of your Form 1040A; or line 36 of your Form 1040NR. You will then need to add any of the following below. Consult your tax advisor if you need assistance):
Traditional IRA contributions that were deducted
Student loan interest amounts deducted
Tuition and fees deducted
Domestic production activities deducted
Foreign income or housing costs excluded on Form 2555
Foreign housing deduction taken on Form 2555
Savings bond interest excluded on Form 8815
Adoption benefits from an employer excluded on Form 8839
Once you have determined your official Modified Adjusted Gross Income (which is your Taxable Income), you will be able to determine how much subsidy you could qualify for and estimate what your premiums will be. Most of the online calculators ask you for your Household Income and not your Modified Adjusted Gross Income. These online calculators are just an estimate subject to change. The amount of subsidy will be derived from your placement on the Federal Poverty Level Chart. Only those that fall under the 400% of the Federal Poverty Level will qualify for the subsidy. The Federal Poverty Level is an income level determined annually by the Department of Health and Human Services. For 2012 it was $14,856 to $44,680 for an individual and $30,656 to $92,200 for a family of 4.
Zenker Insurance Agency, Inc.
3868 W. Carson St, Suite 206
Torrance CA 90503
310.214.2444 | 800.560.2443