How to Calculate AGI for ACA If Married But Only One Gets ACA

If you are married and only one of you gets ACA, it is important to calculate your AGI correctly. AGI, or adjusted gross income, is used to determine your eligibility for ACA subsidies.

What is AGI?

AGI is your total income minus certain deductions and adjustments. These deductions and adjustments include things like:

Standard deduction
Itemized deductions
Student loan interest deduction
IRA contributions

How to Calculate AGI When Married But Only One Gets ACA

If you are married and only one of you gets ACA, you will need to calculate your AGI using your household income. This means that you will need to include the income of both you and your spouse.

For example, let’s say you have a household income of $50,000. If only you get ACA, you will need to use $50,000 as your AGI when calculating your eligibility for subsidies.

What If I File Taxes Separately?

If you file taxes separately from your spouse, you will need to use your individual income to calculate your AGI. This means that you will not include the income of your spouse.

For example, let’s say you have an individual income of $25,000. If you file taxes separately and only you get ACA, you will need to use $25,000 as your AGI when calculating your eligibility for subsidies.

How to Reduce Your AGI

There are a few things you can do to reduce your AGI and potentially qualify for higher ACA subsidies. These things include:

Contributing to an IRA
Making deductible contributions to a Health Savings Account (HSA)
Paying student loan interest
Itemizing your deductions

If you are unsure how to calculate your AGI, you can use the IRS’s AGI worksheet. You can also contact a tax professional for help.

Conclusion

Calculating your AGI correctly is important for determining your eligibility for ACA subsidies. If you are married and only one of you gets ACA, you will need to use your household income to calculate your AGI. There are a few things you can do to reduce your AGI and potentially qualify for higher subsidies. If you need help calculating your AGI, you can use the IRS’s AGI worksheet or contact a tax professional.