How To Find My Modified Adjusted Gross Income

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What Is the Difference Between AGI and MAGI on Your Taxes?

Updated for Revenue enhancement Year 2021 • October xvi, 2021 02:37 AM

OVERVIEW

Your adjusted gross income, or AGI, is an of import line item on your taxes, as it affects your eligibility for certain taxation benefits. The same is true of your modified adjusted gross income, or MAGI.

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Typically, your MAGI (modified adjusted gross income) and AGI (adjusted gross income) are close in value to ane some other. However, the small adjustments that tweak your AGI into your MAGI could have an important bearing on your overall tax return.

AGI calculation

Your adjusted gross income is all of the income you bring in, minus certain adjustments. You can discover the allowable reductions to your income on the front end page of your Course 1040.

Commonly used adjustments include the following:

IRA and self-employed retirement programme contributions
Alimony payments (for divorce agreements prior to 2019)
Self-employed health insurance payments
Half of any self-employment taxes paid

Other adjustments used in calculating AGI include the following:

Health savings account deductions
Penalties on the early withdrawal of savings
Educator expenses
Student loan interest
Moving expenses (for taxation years prior to 2018)
Tuition and fees
Deductions for domestic production activities (for tax years prior to 2018)
Sure concern expenses of performing artists, reservists, and fee-basis government officials

MAGI calculation

To summate your modified adjusted gross income, take your AGI and "add-back" sure deductions. Many of these deductions are rare, so information technology'due south possible your AGI and MAGI can be identical. Dissimilar credit and deductions can have differing add-backs for your MAGI calculation. According to the IRS, your MAGI is your AGI with the add-on of the appropriate deductions, potentially including:

Educatee loan interest
Ane-half of self-employment tax
Qualified tuition expenses
Tuition and fees deduction
Passive loss or passive income
IRA contributions
Non-taxable social security payments
The exclusion for income from U.S. savings bonds
Foreign earned income exclusion
Foreign housing exclusion or deduction
The exclusion nether 137 for adoption expenses
Rental losses
Whatsoever overall loss from a publicly traded partnership

MAGI effects on your taxes

Your MAGI is used every bit a footing for determining whether y'all qualify for certain revenue enhancement deductions. One of the almost notable is in determining whether or not your contributions to an individual retirement plan are deductible.

For case, every bit of 2021, if yous were a single filer and covered by a retirement plan at piece of work, you couldn't take an IRA deduction if yous had an MAGI of $76,000 or higher. Yous too couldn't take a deduction for educatee loan interest in 2021 if y'all had a MAGI of $85,000 or higher equally a unmarried, or $170,000 if married and filing jointly.

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The above article is intended to provide generalized financial information designed to brainwash a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any activeness, yous should always seek the assistance of a professional who knows your particular state of affairs for advice on taxes, your investments, the constabulary, or any other business and professional matters that affect you and/or your business organization.

How To Find My Modified Adjusted Gross Income,

Source: https://turbotax.intuit.com/tax-tips/irs-tax-return/what-is-the-difference-between-agi-and-magi-on-your-taxes/L7kHckNS3

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How To Find My Modified Adjusted Gross Income