1. What is Modified Adjusted Gross Income?

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

2. How Does the Calculator Work?

The calculator uses the MAGI formula:

Where:

• \( AGI \) — Your Adjusted Gross Income from tax return
• \( \text{Additions} \) — Items that must be added back to AGI (varies by program)

Explanation: Common additions include tax-exempt interest, excluded foreign income, non-taxable Social Security benefits, and certain deductions.

3. Importance of MAGI Calculation

Details: MAGI determines eligibility for premium tax credits, IRA contributions, Medicaid, CHIP, and other government programs. Different programs may calculate MAGI slightly differently.

4. Using the Calculator

Tips: Enter your AGI from your tax return and the sum of all required additions for the specific program you're applying for. Both values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find my AGI?
A: AGI appears on line 11 of Form 1040 (2022 tax year) or line 8b of Form 1040-SR.

Q2: What counts as additions?
A: Common additions include tax-exempt interest, excluded foreign income, non-taxable Social Security benefits, and certain deductions like student loan interest.

Q3: Is MAGI the same for all programs?
A: No, different programs may have slightly different MAGI calculations. Always check the specific program requirements.

Q4: How often should I calculate my MAGI?
A: You should calculate it whenever applying for programs that use MAGI or when your financial situation changes significantly.

Q5: Can MAGI be lower than AGI?
A: No, MAGI is always equal to or greater than AGI since it's AGI plus additions.