I have a substantial net loss carryover of about $30,000 from previous years. I expect a loss from my business again this year. However, I do have $20,000 in gambling winnings and $16,000 in gambling losses. For Obama-care purposes what would my MAGI be?

By definition, modified adjusted gross income is the adjusted gross income on your federal income tax return plus any excluded foreign income, nontaxable Social Security benefits (including tier 1 railroad retirement benefits), and tax-exempt interest received or accrued during the taxable year. It does not include Supplemental Security Income (SSI). For your purposes, it's important to understand which items are reported above the adjusted gross income line and which are reported below on your tax return. Your gambling losses are reported on line 28 of Schedule A on your Form 1040. (Reference IRS Publication 529 & IRC Section 165(d)) Thus, your MAGI for Obama-care purposes would be the $20,000 in gambling winnings less your business loss for the year. Yes, the NOL from the prior year would reduce your MAGI. It is treated as a negative number on line 21 of your Form 1040. Thus, an above the line AGI item.