MAGI on Worksheet 1 for Social Security Recipients Who Contribute To An IRA does not match expected MAGI from Form 1040

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

IRS filing deadline update

The IRS MeF system is now processing returns, and the filing deadline has been extended to 11:59 PM on Wednesday, April 18, 2018. For the latest details, see UltraTax CS alerts and notices.

Question

Why does the MAGI on Worksheet 1 for Social Security Recipients Who Contribute To An IRA not match the expected MAGI from Form 1040?

Answer

If the taxpayer (or spouse, if filing jointly) is claiming the self-employed health insurance deduction and premium tax credit, the Premium Tax Credit Simplified Method Calculation calculates the MAGI for the PTC using an interim self-employed health insurance deduction amount. The resulting tentative self-employed health insurance deduction, which can be found on PTC Simplified Calculation Method Worksheet, line 18, in the Form 8962 folder in Forms view, is used to calculate the MAGI on Worksheet 1 for Social Security Recipients Who Contribute To An IRA. See Calculations in worksheets for Publication 974, Premium Tax Credit for details.

Share This