1. What is Modified Adjusted Gross Income?

Modified Adjusted Gross Income (MAGI) is your Adjusted Gross Income (AGI) with certain deductions added back. It's used to determine eligibility for various tax benefits and health insurance programs.

2. How MAGI is Calculated for 2024

The basic formula for MAGI is:

Common additions may include:

• Tax-exempt interest
• Excluded foreign income
• Non-taxable Social Security benefits
• Tax-free retirement account distributions
• Other specific deductions that were subtracted from gross income

Note: The exact additions vary depending on the program using MAGI (ACA, IRA contributions, etc.).

3. Importance of MAGI Calculation

Details: MAGI is crucial for determining eligibility for premium tax credits under the Affordable Care Act, Roth IRA contributions, student loan interest deductions, and other tax benefits.

4. Using the Calculator

Tips: Enter your AGI from your tax return and the total of all applicable additions for 2024. The calculator will sum these to provide your MAGI.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find my AGI?
A: AGI appears on line 11 of Form 1040 for 2023 tax returns (2024 forms may differ slightly).

Q2: Are all additions the same for every program?
A: No, different programs may use slightly different MAGI calculations. Always verify with the specific program requirements.

Q3: How often does MAGI change?
A: The IRS may adjust MAGI calculations annually. This calculator reflects 2024 tax year rules.

Q4: Does MAGI include standard or itemized deductions?
A: No, MAGI is calculated before these deductions are applied.

Q5: Why is MAGI important for health insurance?
A: MAGI determines eligibility for Medicaid and ACA marketplace subsidies.