Your adjusted gross income, or AGI, is an important line item on your taxes, as it affects your eligibility for certain tax benefits. The same is true of your modified adjusted gross income, or MAGI.
What is your modified adjusted gross income (MAGI)? If you’re filing Form 1040 and itemizing so that you can take certain deductions, you may have to calculate your MAGI, or modified adjusted gross income. Your MAGI may also be a baseline for the phaseout level of some credits and tax-...
Throughout your return you’ll notice that the IRS also uses modified adjusted gross income, or MAGI. Your MAGI is your AGI increased or decreased by certain amounts that are unique to specific deductions. For example, you'll need to calculate your MAGI if you want to deduct some ...
Ask the IRS to Calculate Your EITC Yes, these calculations are complex, but the IRS will help you along. You can ask the agency to make the calculation for you. Instructions for doing this are included in IRSPublication 596in the section titled “Figure B.” ...
To calculate the amount of subsidies you receive, the formula uses the price of a particular marketplace plan available to you as a benchmark. That plan is “the applicable second lowest cost silver plan with respect to the taxpayer.” ...
If you want to know how much child tax credit you currently qualify for, you can calculate this using the IRS' Interactive Tax Assistant tool online. Additional Child Credit What is the additional child tax credit? The child tax credit can lower your tax liability by $2,000 per qualifying...
To be able to claim the American Opportunity Tax Credit or the Lifetime Learning Credit (LLC), you must have received the Form 1098-T, Tuition Statement, for you or your dependent from aneither in the U.S. or abroad - see details on. You or your dependent should typically receive the...
You must report your NII on IRS Form 8960. This form can help entities that are required to pay the tax to calculate their liability. The figure on this form is transferred to the appropriate main tax form. For individuals, the NII tax is reported and paid withForm 1040. Estates and tru...
Here's a hypothetical example to show how student loan interest deductions work. Let's suppose you're a single taxpayer with a MAGI of $72,000 who paid $900 in interest on a student loan. Because you earned too much to qualify for a full deduction, you have to calculate your partial ...
Security benefits, however, depends on your modified adjusted gross income (MAGI). If your MAGI is above a certain threshold for your filing status (e.g., single or married filing jointly), then your benefits would be taxable. Up to 85% of a taxpayer’s Social Security ...