What is Modified Adjusted Gross Income (MAGI)?

Modified Adjusted Gross Income is your Adjusted Gross Income (AGI) plus the addition of certain deductions. Oftentimes, your AGI and MAGI can be identical. The following deductions (as applicable) are added back to calculate MAGI:

  • Student loan interest
  • One-half of self-employment tax
  • Qualified tuition expenses
  • Tuition and fees deduction
  • Passive loss or passive income
  • IRA contributions and taxable social security payments
  • The exclusion for income from U.S. savings bonds
  • The exclusion under 137 for adoption expenses
  • Rental losses
  • Any overall loss from a publicly traded partnership

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