Our Modified Adjusted Gross Income Calculator helps you determine your MAGI by adding back certain deductions to your Adjusted Gross Income (AGI). This figure is crucial for understanding your eligibility for various tax benefits, like Roth IRA contributions and income-based tax credits.
Calculate your modified adjusted gross income (MAGI) by adding back specific deductions to your adjusted gross income (AGI).
How to Use the Calculator
- Adjusted Gross Income (AGI): Enter your AGI. Example: If your AGI is $50,000, input this figure.
- IRA Contributions: Input tax-deductible contributions. Example: If you contributed $3,000 to a traditional IRA, enter $3,000.
- Tuition & Fees: Include eligible education expenses. Example: If you paid $2,500 in tuition, input $2,500.
- Student Loan Interest: Add interest paid on student loans. Example: If you paid $1,000 in student loan interest, enter $1,000.
- 1/2 SE Tax: Enter half of your self-employment tax. Example: If your self-employment tax was $4,000, you’d enter $2,000.
- Excluded Foreign Income: Report any foreign income exclusions. Example: If you excluded $10,000 of foreign income, input $10,000.
- Passive Income and Rental Losses: Include passive income and rental losses. Example: If you had $1,500 in rental losses, enter that amount.
- Other Deductions: Add any other relevant deductions. Example: If you have $500 in additional deductions, input $500.
Once you have entered all the details, click ‘Calculate’ to get your MAGI. If you’re unsure about your AGI before adding back deductions, consider using our AGI Calculator first. AGI is important because it’s the starting point for figuring out your taxable income and eligibility for important benefits, like tax credits and deductions.
What Is Required To Calculate MAGI
| Adjustment | Description |
|---|---|
| IRA Contributions | Tax-deductible contributions to a traditional IRA that are added back to calculate MAGI. |
| Student Loan Interest | Interest paid on student loans that is deductible from AGI but added back for MAGI. |
| Excluded Foreign Income | Foreign earned income excluded from AGI but added back to calculate MAGI. |
| Tax-Exempt Interest | Interest from municipal bonds that is typically tax-exempt but included in MAGI. |
For a broader understanding of your total income, our Annual Income Calculator can also provide helpful context, ensuring you’re aware of how your income impacts your financial and tax situation.
Why MAGI Matters
MAGI impacts your eligibility for several tax benefits, such as Roth IRA contributions and certain education credits. For example, if your MAGI exceeds the income limit for Roth IRA contributions, you may need to explore alternative retirement savings options.
Are You Ready To Use The MAGI Calculator?
You’ve got this! Calculating your Modified Adjusted Gross Income (MAGI) becomes easy with our tool, helping you unlock tax benefits and make smarter financial decisions. By understanding your MAGI, you’ll stay on top of your tax game and know exactly where you stand financially.
To gain an even clearer picture of your overall financial health, consider using our Debt-To-Income Ratio Calculator to see how your debt impacts your financial stability.
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