What is Modified Adjusted Gross Income (MAGI)?

Modified Adjusted Gross Income is used when computing a specific deduction or credit. Basically, it means that something is being added back to Adjusted Gross Income. MAGI is usually calcuated in the following way:

If you use Form 1040:

Take your Adjusted Gross Income on Line 36 and add back in:

If you use Form 1040A:

Take your Adjusted Gross Income from Line 21 and add back in:

  • IRA deduction.
  • Student loan interest deduction.
  • Tuition and fees deduction.
  • Exclusion of quialified savings bond interst shown on Form 8815.
  • Exclusion of employer-provided adoption benefits shown of Form 8839.

You will need to know your MAGI for almost all deductions (like IRAs) and credits (like the Child Tax Credit and Education Expense Credits). To learn more about MAGI, you should read Publication 17 from the IRS.

4 thoughts on “What is Modified Adjusted Gross Income (MAGI)?”

  1. I read that the taxpayer’s MAGI is lowered by excluding Taxable Social Security income received. Is that true?

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