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SOURCE: Zane Benefits
Beginning 2014, Certain Individuals May Have Financial Assistance to Purchase Health Insurance
Park City, Utah (PRWEB) February 01, 2013
Today, Zane Benefits, Inc. published new information on Health Care Reform and Adjusted Gross Income versus Modified Adjusted Gross Income. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement accounts.
According to Zane Benefits’ website, Modified Adjusted Gross Income is a measure used by the IRS to determine if a taxpayer is eligible to use certain deductions, credits, or retirement plans. Beginning in 2014, individuals who purchase health insurance coverage through one of the new health insurance exchanges will be eligible for financial assistance if their income is no more than 400% of the federal poverty line (FPL). “Modified Adjusted Gross Income” (not "Adjusted Gross Income") will be used in determining eligibility for these premium tax subsidies.
What is Adjusted Gross Income?
According to Zane Benefits’ website, generally, your Adjusted Gross Income (AGI) is you household's income less various adjustments. Adjusted Gross Income is calculated before the itemized or standard deductions, exemptions and credits are taken into account.
What is Modified Adjusted Gross Income?
According to Zane Benefits’ website, generally, your Modified Adjusted Gross Income (MAGI) is the total of your house hold's Adjusted Gross Income and any tax-exempt interest income you may have (these are the amounts on lines 37 and 8b of IRS from 1040).
How to Calculate Your Gross Income (GI)
According to Zane Benefits’ website, your gross income is the money you earned through wages, interests, dividends, rental and royalty income, capital gains, business income, farm income, unemployment and alimony. This is the basis for your AGI calculation.
Gross income includes salary, interest earned, income from investments and basically any income you made through business, trade or investments.
How to Calculate Your Adjusted Gross Income (AGI)
According to Zane Benefits' website, once you have gross income, you "adjust" it to calculate your AGI. You make adjustments by subtracting qualified deductions from your gross income.
Adjustments can include items like some contributions to IRAs, moving expenses, alimony paid, self-employment taxes, and student loan interest. There are many free AGI calculators available online.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangement (HRAs) and defined contribution healthcare. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.
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