Modified Adjusted Gross Income (MAGI) Calculator
Determine your eligibility for IRA contributions, ACA subsidies, and tax credits.
Your Estimated MAGI:
What is Modified Adjusted Gross Income (MAGI)?
Modified Adjusted Gross Income (MAGI) is a calculation used by the IRS to determine your eligibility for various tax benefits. While Adjusted Gross Income (AGI) is your total income minus specific deductions, MAGI "adds back" certain deductions to give a broader picture of your financial situation.
Why Calculating MAGI is Crucial
MAGI is the key metric used to determine:
- If you can contribute to a Roth IRA.
- If your contributions to a Traditional IRA are tax-deductible.
- Eligibility for Premium Tax Credits (Health Insurance subsidies under the ACA).
- Eligibility for certain education-related tax credits.
MAGI vs. AGI: What's the Difference?
For many taxpayers, MAGI and AGI are exactly the same. However, if you claim specific deductions like student loan interest, tuition fees, or exclude foreign income, your MAGI will be higher than your AGI because those amounts are added back into the total.
Common Examples of MAGI Calculations
If your AGI is $50,000 and you deducted $2,500 in student loan interest, your MAGI would be $52,500 ($50,000 + $2,500).
If your AGI is $40,000 but you excluded $30,000 of foreign earned income from your taxes, your MAGI for most credit evaluations would be $70,000.
How to Use This Tool
To get an accurate result, look at your most recent tax return (Form 1040). Start with your AGI from the "Adjusted Gross Income" line, then input any specific deductions you took that are listed in the fields above. Our calculator will instantly aggregate these values to show your Modified Adjusted Gross Income.