Taxable Status, Employment Disability Income, how to Confirm

[yorkriver1]

Accountant for the client says bring end of year form for the disability payments. Their other income is SSDI, which does count as income for subsidy. Would prefer to have good answer before issuing policy, as cost sharing in addition to monthly premium would vary quite a bit.
Any input on how to determine whether to count work disability is helpful. Some clients say it's not part of MAGI at all for theirs.

 

[G.Gordon]

If they paid the premium for the DI policy it is not income unless it was paid with pre-tax (sec. 125) dollars.
If the employer provided this protection as a benefit, it is taxable.

 

[Ann H]

G. Gordon is correct. It could be one of these:

1. The client paid the premium, and did NOT use pre-tax dollars (section 125). The benefit is not taxable.
2. The Employer paid 100% of the premium. The benefit is fully taxable.
3. The Employer paid part of the premium, the employee paid the other part and used pre-tax dollars (Section 125). The benefit is fully taxable.
4. The Employer paid part of the premium, the employee paid the other part and did NOT use pre-tax dollars (Section 125). A pro-rata share of the premium is not taxable.

 

[cadylou]

So, if someone has taxable SSDI, do we count it as part of MAGI or not?

 

[TxOnline]

SSDI is part of MAGI.
The taxable portion as well as the non-taxable portion.

http://laborcenter.berkeley.edu/pdf/2013/MAGI_summary13.pdf

https://www.healthcare.gov/income-and-household-information/income/

 

[yorkriver1]

SSDI is part of MAGI.
The taxable portion as well as the non-taxable portion.

http://laborcenter.berkeley.edu/pdf/2013/MAGI_summary13.pdf

https://www.healthcare.gov/income-and-household-information/income/

Recently, I had to sell an SSDI recipient on filing a tax return so that the spouse with a chronic degenerative disease could get health insurance at an affordable rate. The free clinic turned them down for income, referred them to us.
After seeing the combined financial benefits of APTC and CSR, there was cheerful agreement to file.
A couple months ago, my one of my DI, tax/no tax dilemmas was solved when both received SSDI. It can be a challenge to figure out on the spot when they need to enroll.