Modified Adjusted Gross Income (MAGI) Calculator
Calculate your Modified Adjusted Gross Income (MAGI) to determine eligibility for tax credits, deductions, and subsidies. Used for ACA health insurance, IRA contributions, and Medicare premiums.
MAGI Summary
Eligibility Results
Tax Implications
Understanding Modified Adjusted Gross Income (MAGI)
Modified Adjusted Gross Income (MAGI) is your Adjusted Gross Income (AGI) with certain deductions added back. It's used to determine eligibility for various tax credits, subsidies, and retirement account contributions.
How MAGI is Calculated
MAGI Formula
MAGI = AGI + Foreign Earned Income Exclusion + Certain Deductions
Added Back to AGI:
- Traditional IRA deductions
- Student loan interest deductions
- Tuition and fees deductions
- Foreign earned income exclusion
- Saver's credit (for Roth IRA)
Not Added Back:
- Self-employment tax deduction
- Self-employed health insurance
- Penalty on early withdrawal
- Alimony payments
- Domestic production activities
MAGI Uses
ACA Health Insurance
Determines premium tax credits
Affects subsidy amounts
Medicaid eligibility
Retirement Accounts
Roth IRA contribution limits
Saver's credit eligibility
IRA deduction phase-outs
Medicare Premiums
Income-related monthly adjustment
Part B and Part D surcharges
Higher premium brackets
ACA Subsidy Eligibility
| Household Size | 2024 Federal Poverty Level | Subsidy Eligibility (400% FPL) |
|---|---|---|
| 1 | $14,580 | $58,320 |
| 2 | $30,660 | $122,640 |
| 3 | $46,740 | $186,960 |
| 4 | $62,820 | $251,280 |
| 5 | $78,900 | $315,600 |
Roth IRA Eligibility
Contribution Limits (2024)
- Under 50: $7,000
- 50 and older: $8,000
- Phase-out begins at MAGI $146,000 (single)
- Phase-out ends at MAGI $161,000 (single)
Saver's Credit
- Up to $2,000 credit per person
- Phase-out based on MAGI
- Available for Roth IRA contributions
- Non-refundable tax credit
Medicare IRMAA
| MAGI Range | Part B Surcharge | Part D Surcharge |
|---|---|---|
| $97,000 - $123,000 | $69.90 | $12.90 |
| $123,000 - $153,000 | $174.70 | $33.30 |
| $153,000 - $183,000 | $279.50 | $53.80 |
| $183,000 - $500,000 | $384.30 | $74.20 |
| $500,000+ | $419.30 | $81.00 |
Common MAGI Adjustments
Added Back for ACA
- Traditional IRA contributions
- Foreign earned income exclusion
- Student loan interest deduction
- Tuition and fees deduction
Added Back for Roth IRA
- Traditional IRA contributions
- SEP IRA contributions
- SIMPLE IRA contributions
- Saver's credit (added back)
MAGI vs. AGI
AGI (Adjusted Gross Income)
Base income after adjustments
- Used for federal income tax
- Standard deductions not included
- Itemized deductions not included
- Personal exemptions not included
MAGI (Modified AGI)
AGI with specific additions
- Used for ACA subsidies
- Used for Roth IRA limits
- Used for Medicare premiums
- Certain deductions added back
Key Takeaways
- MAGI = AGI + certain deductions that were subtracted to get AGI
- Used to determine ACA health insurance subsidy eligibility
- Determines Roth IRA contribution limits and phase-outs
- Affects Medicare Part B and Part D premium surcharges
- Different calculations for different purposes (ACA vs. Roth IRA)
- Foreign earned income exclusion is added back for ACA
- Traditional IRA deductions are added back for Roth IRA eligibility
- Student loan interest deductions are added back for ACA
- MAGI limits change annually with inflation
- Consult tax professional for complex situations