What is MAGI?
Your Modified Adjusted Gross Income (MAGI) is your Adjusted Gross Income (AGI) with certain deductions added back. The IRS uses MAGI — not your gross income — to determine eligibility for tax credits, retirement account contributions, and government health programs.
Because most people don't have foreign earned income, excluded savings bond interest, or non-taxable Social Security benefits, their MAGI is often identical to their AGI. But for those who do, knowing the difference can be the key to unlocking valuable tax savings.
MAGI vs. AGI: What's the Difference?
- AGI is your gross income minus "above-the-line" deductions (student loan interest, IRA contributions, alimony, etc.).
- MAGI adds certain deductions back to your AGI, depending on what you're applying for.
- AGI appears on line 11 of your Form 1040. MAGI is not shown on the form — you must calculate it separately.
Why Is MAGI Important?
Your MAGI determines:
- Whether you qualify for the Health Care Premium Tax Credit (marketplace insurance subsidies)
- Whether you can deduct your Traditional IRA contributions if you have a workplace retirement plan
- Whether — and how much — you can contribute to a Roth IRA
- Whether the Net Investment Income Tax (3.8%) applies to your investment income
- Whether you qualify for the American Opportunity (Education) Tax Credit
- Your eligibility for the Child Tax Credit
Generally, the lower your MAGI, the more likely you are to qualify for these benefits.
How to Calculate MAGI
The formula depends on the program you're applying for. Start with your AGI, then add back specific items:
Health Care Premium Tax Credit
MAGI = AGI + Foreign Earned Income Exclusion + Foreign Housing Exclusion + Tax-Free Interest + Non-Taxable Social Security Benefits
Traditional IRA Contribution Deduction
MAGI = AGI + Student Loan Interest Deduction + Foreign Earned Income & Housing Exclusion + Excluded Savings Bond Interest + Excluded Employer Adoption Benefits
Roth IRA Eligibility
MAGI = Traditional IRA MAGI + Traditional IRA Deduction
Net Investment Income (NII) Tax
MAGI = AGI + Foreign Earned Income Exclusion + Certain Foreign Investment Adjustments
American Opportunity / Child Tax Credit
MAGI = AGI + Foreign Earned Income & Housing Exclusion + Excluded Puerto Rico / American Samoa Income
MAGI Calculation Example
Suppose you want to check eligibility for the Health Care Premium Tax Credit:
- Your AGI = $100,000
- You lived abroad and excluded foreign earned income of $37,000
- Foreign housing costs while abroad: $7,000
- Tax-free municipal bond interest: $2,000
- Non-taxable Social Security: $0
MAGI = $100,000 + $37,000 + $7,000 + $2,000 = $146,000
2024 MAGI Limits Reference
| Purpose | Single / HH | Married Filing Jointly |
|---|---|---|
| Traditional IRA Deduction (with employer plan) | $77,000 – $87,000 | $123,000 – $143,000 |
| Roth IRA Contribution | $146,000 – $161,000 | $230,000 – $240,000 |
| Net Investment Income Tax (3.8%) | Above $200,000 | Above $250,000 |
| American Opportunity Credit | $80,000 – $90,000 | $160,000 – $180,000 |
| Child Tax Credit (phase-out start) | Above $200,000 | Above $400,000 |
Frequently Asked Questions
Is my MAGI the same as my AGI?
For most people — yes. MAGI only differs from AGI if you have foreign earned income, tax-exempt interest, non-taxable Social Security benefits, or certain other deductions that must be added back for a specific program.
Where can I find my AGI?
Your AGI is on line 11 of IRS Form 1040. You can also find it in your tax software or from the previous year's tax return.
Does the CARES Act stimulus check affect my MAGI?
No. The CARES Act explicitly states that stimulus payments do not affect MAGI calculations for any purpose, including Medicaid eligibility.
Why does MAGI differ by program?
Different tax benefits and programs were designed with different goals. Congress wrote separate MAGI definitions for each to fine-tune who qualifies, ensuring that specific types of income (like foreign earnings) are treated consistently for each benefit.
Can I use this calculator for currencies other than USD?
Yes. This calculator supports 12 major world currencies including the US Dollar (USD) and Russian Ruble (RUB). Note that official IRS limits are in USD — if you earn in another currency, convert your income to USD before comparing to the official thresholds.