Question: Are annual social security benefits counted towards MAGI, including the untaxed portion (as far as CC is concerned)? Sometimes, depending on income only a portion of my wife's SS is considered taxable.
Answer: MAGI (modified adjusted gross income) includes your adjusted gross income, tax-exempt interest income and non-taxable Social Security benefits. Some people who get Social Security benefits must pay federal income taxes on up to 85% of their Social Security benefits. If your income is less than $25,000 for individual tax filers or less than $32,000 for joint income tax filers, you pay no tax on your Social Security benefits. If you are married and file a separate return, you probably will have to pay taxes on your benefits.