• Adjusted Gross Income (AGI, as defined by IRS) • Plus: Excluded foreign income • Plus: Tax-exempt interest • Plus: Non-taxable Social Security benefits • Equals: MAGI Income Counted Toward MAGI: MAGI includes all the income types counted in AGI, as well as any tax-exempt ...
Modified adjusted gross income can be defined as your household’s AGI after anytax-exempt interestincome and after factoring in certain tax deductions.1Knowing your MAGI can help reduce an individual's taxable income (to account for your retirement account contributions), factor in the eligibility ...
The IRS uses your AGI and MAGI to determine whether you qualify for certain tax deductions or credits. If your AGI (or MAGI) is below certain thresholds, you may qualify for more tax deductions. Therefore, you may be wondering how you can reduce your AGI in order to cap...