Which of the following statements are true about MAGI? (Choose 3)

Income reported on the previous year's federal income tax return is a valuable tool for estimating a household's Modified Adjusted Gross Income (MAGI). MAGI is an important figure used to determine eligibility for various health coverage programs, including those offered through the Marketplace and Medicaid. Because MAGI includes an individual's adjusted gross income along with certain deductions and tax-exempt interest, the previous year's tax return provides a reliable basis for estimating current eligibility, especially if the income situation hasn't significantly changed.

The relevance of income from the prior tax return in estimating MAGI allows customers to have a clearer understanding of their financial situation as it pertains to health coverage options, thereby facilitating better planning for healthcare needs and expenses. This can also streamline the application process, making it easier for both the applicant and the service providers to assess eligibility and plan for coverage accordingly.