1. What is MAGI?

MAGI (Modified Adjusted Gross Income) is your Adjusted Gross Income (AGI) plus certain deductions and tax-exempt income. It's used to determine eligibility for various tax benefits and government programs.

2. How MAGI is Calculated

The basic MAGI calculation is:

Common additions to AGI include:

• Tax-exempt interest
• Foreign earned income exclusion
• Non-taxable Social Security benefits
• Excluded employer-provided adoption benefits
• Student loan interest deduction
• Tuition and fees deduction

3. Importance of MAGI

Details: MAGI is used to determine eligibility for premium tax credits under the Affordable Care Act, IRA contribution limits, Roth IRA eligibility, and various other tax benefits and government programs.

4. Using the Calculator

Tips: Enter your AGI from your tax return (Form 1040, line 11) and the sum of all applicable additions. The calculator will compute your MAGI.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find my AGI?
A: AGI appears on line 11 of your Form 1040 tax return. It's your total income minus specific deductions.

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

Q3: Why is MAGI different from my take-home pay?
A: MAGI is based on your tax return income figures, not your net paycheck amount. It includes certain non-cash income and excludes some deductions.

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

Q5: How often should I calculate my MAGI?
A: You should calculate it annually when preparing your taxes or applying for benefits that use MAGI.