Modified Adjusted Gross Income (MAGI) Calculator

How to Calculate Modified Adjusted Gross Income (MAGI)

Understanding and calculating your Modified Adjusted Gross Income (MAGI) is crucial for various tax-related purposes, including determining eligibility for certain deductions, credits, and retirement account contributions. This guide will walk you through the process of calculating your MAGI.

MAGI Formula

The formula to calculate MAGI is:

$$MAGI = AGI + TaxExemptInterest + ForeignEarnedIncome + OtherAdjustments$$

Where:

• $$AGI$$ is your Adjusted Gross Income
• $$TaxExemptInterest$$ is your tax-exempt interest income
• $$ForeignEarnedIncome$$ is your foreign earned income exclusion
• $$OtherAdjustments$$ may include other specific additions or subtractions based on your tax situation

Calculation Steps

1. Determine your Adjusted Gross Income (AGI) from your tax return
2. Add any tax-exempt interest income
3. Add back any foreign earned income exclusion
4. Include any other specific adjustments required for your tax situation
5. Sum up all these components to get your MAGI

Example Calculation

Let's calculate the MAGI for someone with the following financial details:

• Adjusted Gross Income (AGI): $75,000
• Tax-Exempt Interest: $2,000
• Foreign Earned Income Exclusion: $5,000

Step 1: Apply the Formula

$$MAGI = 75,000 + 2,000 + 5,000$$

Step 2: Perform the Calculation

$$MAGI = 82,000$$

Step 3: Final Result

The estimated Modified Adjusted Gross Income (MAGI) is $82,000.

Visual Representation

This pie chart illustrates the breakdown of the $82,000 MAGI. The largest component is the AGI ($75,000), followed by the Foreign Earned Income Exclusion ($5,000) and Tax-Exempt Interest ($2,000).