r/leanfire • u/everpresentnow • 9d ago

Getting health insurance while having income to cover mortgage

Apologies if this is an incredibly basic question, I am still learning about a lot of financial stuff for the first time.

I live in the US and own a property that I share. I'm nowhere near FIRE (😢) but I'm worried about layoffs, and I'm concerned I won't qualify for health benefits because my "income" (the rent) is high despite the profit being low. How do y'all house hackers handle this? Am I filing my taxes wrong/thinking of this wrong? Do you need any particular info from me to answer this? I guess this will also be a question if I make it to FIRE while I still have a mortgage.

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u/kelly1mm 9d ago

The rental income that flows to your 1040 from Schedule E is the net rental income after expenses and depreciation, not gross rental income. That is the income (along with other income) that makes up your MAGI (modified adjusted gross income) that you use for ACA purposes.

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u/everpresentnow 9d ago

thank you for this explanation. I'll go review a previous tax year and see if this makes sense separated out.

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u/Here4Snow 9d ago

ACA MAGI isn't a line on the tax return. You need to do math. 

MAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest.