How do I calculate MAGI?

ruebarb2000
ruebarb2000 Member Posts: 2 Newcomer
edited December 2024 in General

How do I calculate MAGI?

Tagged:

Answers

  • Tanner
    Tanner FreeTaxUSA Agent Posts: 6 image

    Hello ruebarb2000,

    Modified adjusted gross income (MAGI) can change depending on what you want to use it for. Generally, MAGI is calculated in two steps:

    1. Calculate your AGI
    2. Add back certain deductions to calculate your MAGI

    The deductions that you would add back could include any of these:

    • Student loan interest
    • IRA contributions
    • Qualified tuition expenses
    • Tuition and fees deduction
    • Non-taxable social security payments

    Many of these deductions are rare, because of this your AGI and MAGI could be identical.

  • Nathanmeade
    Nathanmeade Member Posts: 1 Newcomer

    would you calculate magi with the standard deduction?

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 956 image
    Hello Nathanmeade,

    No, MAGI is calculated before (without) the standard deduction. The IRS says:

    How to calculate modified adjusted gross income
    You can use tax software or calculate MAGI yourself:

    1. Add or subtract the items listed for the specific tax benefit (credit or tax advantaged account contribution) you’re requesting
    2. Add that amount to your AGI (from line 11 of Form 1040) (or subtract if it’s negative)
    3. Use that MAGI amount to see if you qualify for that specific benefit only
    4. If you need to calculate MAGI for a different benefit, repeat steps 1 to 3 for that one

    https://www.irs.gov/credits-deductions/modified-adjusted-gross-income

Categories