What is MAGI and how does it differ from AGI?

MAGI starts with AGI and adds back certain deductions. The specific add-backs depend on the purpose. MAGI is used to determine eligibility for various credits, deductions, and programs.

What is MAGI for Roth IRA purposes?

AGI plus: student loan interest deduction, tuition deductions, IRA deduction, rental losses, employer adoption expenses, excluded foreign income, and bond interest.

How does MAGI affect ACA premium tax credits?

ACA MAGI = AGI plus non-taxable Social Security, tax-exempt interest, and excluded foreign income. Premium tax credit eligibility: 100% to 400% of federal poverty level based on ACA MAGI.

What is IRMAA and how does MAGI affect it?

IRMAA is the Medicare premium surcharge for higher earners. Based on MAGI from 2 years prior. 2024 IRMAA surcharges start at $103,000 (single) / $206,000 (MFJ), adding up to $419.30/month to Part B premiums.

How can I reduce MAGI?

Strategies: maximize traditional 401k and HSA contributions, use QCDs instead of IRA withdrawals (excludes from AGI), harvest capital losses, and time income realization carefully.

US Modified Adjusted Gross Income (MAGI) Calculator

Calculate Modified AGI for multiple purposes: Roth IRA eligibility, ACA premium subsidies, IRMAA Medicare surcharges, student loan interest deduction, and IRA deductibility. Each use has different MAGI definition.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate Modified AGI for multiple purposes: Roth IRA eligibility, ACA premium subsidies, IRMAA Medicare surcharges, student loan interest deduction, and IRA deductibility. Each use has different MAGI definition. Use the magi calculator result to inform your calculation.

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Frequently Asked Questions

What is MAGI and how does it differ from AGI?

What is MAGI for Roth IRA purposes?

How does MAGI affect ACA premium tax credits?

What is IRMAA and how does MAGI affect it?

How can I reduce MAGI?