Which of the following income sources is NOT applicable in determining the Modified Adjusted Gross Income (MAGI)?

The correct answer is based on the understanding of what constitutes Modified Adjusted Gross Income (MAGI). MAGI is primarily used to determine eligibility for certain programs, including those under the Affordable Care Act. It consists of your Adjusted Gross Income (AGI) plus additional income sources that are typically non-taxable.

In this context, taxable interest is part of the AGI calculation and is therefore included in the MAGI determination. On the other hand, household AGI, untaxed foreign income, and non-taxable Social Security benefits are components that are either adjusted for or excluded from MAGI calculations depending on the guidelines.

For example, while household AGI is necessary to calculate MAGI, untaxed foreign income and non-taxable Social Security benefits are added back into the AGI to compute MAGI. Therefore, taxable interest is incorporated into the AGI and subsequently affects the MAGI, making it an applicable income source in this context.

Understanding these distinctions is vital for accurately determining MAGI when assessing eligibility for health coverage and related financial assistance.