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.
For example, you'll need to calculate your MAGI if you want to deduct some of your student loan interest payments. For this deduction, your MAGI will be your AGI plus certain exclusions and deductions you’ve claimed for residency outside of the United States, such as the foreign earned in...
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-...
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.” ...
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 ...
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...
Sometimes, you may receive a tax refund if your tax liability is lower due to the tax breaks.You can claim some tax breaks automatically, while others have specific criteria and application processes. For instance, the IRS generally doesn’t tax the proceeds of payouts from life insurance ...
You may also want to consider tax-deferred annuities, which have no IRS contribution limits and are not subject to required minimum distributions (RMDs). Deferring taxes may help grow your wealth faster by keeping more of it invested and potentially growing. You may already be familiar with ...
You might want to determine whether you have to file a tax return for the year before you calculate your AGI. TheInternal Revenue Service (IRS)provides aninteractive tax assistantthat can help you do that. The IRS recommends that you do so, however, even if you are not required to file ...
Your modified adjusted gross income is the number the IRS uses to determine your eligibility for annual contributions to a Roth IRA.5The MAGI is determined by adding certain deductions back to your adjusted gross income. If you are uncertain about what your MAGI will be for the year, be cons...