1. What is MAGI?

Modified Adjusted Gross Income (MAGI) is used to determine eligibility for certain tax benefits and government programs. It's calculated by taking your Adjusted Gross Income (AGI) from line 11 of your 1040 form and adding back certain deductions.

2. How to Calculate MAGI from 1040

The basic MAGI calculation formula is:

Where:

• Line 11 — Your Adjusted Gross Income from IRS Form 1040
• Additions — Certain deductions you may have taken that need to be added back

3. Common Additions to AGI

Common additions include:

• Tax-exempt interest income
• Excluded foreign income
• Non-taxable Social Security benefits
• Tax-exempt retirement account contributions
• Student loan interest deduction
• Tuition and fees deduction
• Passive income or loss

4. Using the Calculator

Instructions: Enter your AGI from line 11 of your 1040 form and the total of any applicable additions. The calculator will compute your MAGI.

5. Frequently Asked Questions (FAQ)

Q1: Why is MAGI important?
A: MAGI determines eligibility for premium tax credits, IRA contributions, Medicaid, and other government programs.

Q2: Is MAGI the same for all purposes?
A: No, different programs may use slightly different MAGI calculations. Always check the specific requirements.

Q3: Where can I find my AGI?
A: Your AGI appears on line 11 of IRS Form 1040 from your most recent tax return.

Q4: What if I'm not sure what to include in additions?
A: Consult a tax professional or refer to IRS guidelines for the specific program you're applying for.

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