1. What is MAGI?

Modified Adjusted Gross Income (MAGI) is used to determine eligibility for premium tax credits and other savings on Healthcare.gov. It's based on your Adjusted Gross Income (AGI) with certain additions.

2. How Does the Calculator Work?

The calculator uses the MAGI formula:

Where:

• \( AGI \) — Adjusted Gross Income from your tax return
• \( \text{Nontaxable Interest} \) — Tax-exempt interest income
• \( \text{Deductions} \) — Certain deductions you may have taken

Explanation: The equation calculates your total income as defined by Healthcare.gov for determining eligibility for marketplace insurance plans.

3. Importance of MAGI Calculation

Details: Accurate MAGI calculation is crucial for determining eligibility for health insurance subsidies, Medicaid, and CHIP programs through Healthcare.gov.

4. Using the Calculator

Tips: Enter your AGI from your tax return, any nontaxable interest income, and applicable deductions. All values must be non-negative dollar amounts.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find my AGI?
A: Your AGI appears on line 11 of Form 1040 (U.S. Individual Income Tax Return).

Q2: What counts as nontaxable interest?
A: This includes tax-exempt interest like from municipal bonds (reported on Form 1040, line 2a).

Q3: What deductions are added back?
A: Common additions include student loan interest, tuition/fees deduction, foreign earned income exclusion, and certain retirement contributions.

Q4: Why is MAGI different from taxable income?
A: MAGI adds back certain deductions that were subtracted to arrive at taxable income, creating a more comprehensive income measure.

Q5: How often should I recalculate my MAGI?
A: Recalculate whenever your income changes significantly, and always before applying for or renewing marketplace coverage.