Found this definition of MAGI at HHS.Gov:
http://www.hhs.gov/healthcare/rights/law/section/1004-income-definitions.pdf‘‘(C) MODIFIED ADJUSTED GROSS INCOME.—The term
‘modified adjusted gross income’ means adjusted gross
income increased by—
‘‘(i) any amount excluded from gross income under
section 911, and
‘‘(ii) any amount of interest received or accrued
by the taxpayer during the taxable year which is
exempt from tax.’’
So the question is: What does Section 911 say?
Well here it is:
http://www.law.cornell.edu/uscode/text/26/911But there is only one reference to qualified dividends is:
(ii) the taxpayer’s qualified dividend income shall be reduced by so much of such capital gain excess as exceeds the taxpayer’s net capital gain
Hmm ..no clue what that means!!!
This passage is in this section:
(2) Special rules
(A) Regular tax
In applying section 1 (h) for purposes of determining the tax under paragraph (1)(A)(i) for any taxable year in which, without regard to this subsection, the taxpayer’s net capital gain exceeds taxable income (hereafter in this subparagraph referred to as the capital gain excess)—
(i) the taxpayer’s net capital gain (determined without regard to section 1 (h)(11)) shall be reduced (but not below zero) by such capital gain excess,
(ii) the taxpayer’s qualified dividend income shall be reduced by so much of such capital gain excess as exceeds the taxpayer’s net capital gain (determined without regard to section 1 (h)(11) and the reduction under clause (i)), and
(iii) adjusted net capital gain, unrecaptured section 1250 gain, and 28-percent rate gain shall each be determined after increasing the amount described in section 1 (h)(4)(B) by such capital gain excess.
