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QUESTION DETAIL
Related User
Votes
I have a substantial net operating loss (NOL) carry forward from prior years. I am self-employed and expect to earn about $25,000 in 2014 plus I expect a $30,000 taxable gain from the anticipated sale of a piece of investment property in 2014. Without the NOL carryforward, my AGI (and MAGI) would be estimated at $55,000. However, the NOL carryforward gives me a negative AGI. Can I represent my MAGI as zero when applying for health insurance through the State exchange under Obamacare?
ANSWER
The BIDaWIZ Team's Answer:
Yes, you are correct that the modified adjusted gross income (MAGI) calculation only relates to non-taxable interest, non-taxable social security benefits and income earned abroad via IRC Section 911. The MAGI calculation is supported via Section IRC Section 36B(d)(2)(B). Please note that since your MAGI can't be reduced below zero with the excess of the NOL, it will be carried forward to future years.
