1. What is MAGI?

MAGI (Modified Adjusted Gross Income) is a variation of your AGI (Adjusted Gross Income) that adds back certain deductions. It's used to determine eligibility for various tax benefits, health insurance subsidies, and retirement account contributions.

2. How to Calculate MAGI

The basic MAGI calculation formula is:

Where:

• \( AGI \) — Your Adjusted Gross Income from line 11 of Form 1040
• \( Additions \) — Specific tax deductions you previously claimed that need to be added back

3. Common Additions to AGI

Typical additions include:

• Student loan interest deduction
• Tuition and fees deduction
• Half of self-employment tax
• Passive income or loss
• Rental losses
• IRA contributions
• Foreign earned income exclusion

4. Using the Calculator

Instructions: Enter your AGI from line 11 of your Form 1040 and the total of all applicable additions. The calculator will sum these amounts to determine your MAGI.

5. Frequently Asked Questions (FAQ)

Q1: Why is MAGI important?
A: MAGI determines eligibility for premium tax credits (ACA subsidies), Roth IRA contributions, student loan interest deductions, and more.

Q2: Is MAGI the same for all purposes?
A: No, different programs may calculate MAGI slightly differently by adding back different deductions.

Q3: Where do I find my AGI?
A: AGI appears on line 11 of Form 1040 (U.S. Individual Income Tax Return).

Q4: Are all deductions added back?
A: No, only specific deductions relevant to the program you're applying for are added back.

Q5: Does MAGI include standard or itemized deductions?
A: No, MAGI is calculated before these deductions are applied.