What is modified adjusted gross income (MAGI)?

Modified adjusted gross income (MAGI) is slightly different from AGI. Unlike your AGI, which is one number, your MAGI may differ depending on the tax credit or deduction you’re trying to claim. But similar to AGI, it can determine which tax deductions or credits you might qualify for on your tax return.

What is the difference between Agi & Magi?

For many taxpayers, their MAGI total is the same or very close to their AGI, since the adjustments some taxpayers make will only slightly change the final number. After you determine your AGI or MAGI, you can choose which tax deductions or tax credits you can claim on your tax return.

What is Magi & how is it calculated?

Typically, your MAGI is your AGI adjusted for certain expenses and income. Generally, your MAGI calculation is your AGI with student loan interest added back in. However, the IRS may calculate your MAGI differently depending on the tax credit or deduction. Here are a few examples of how MAGI determines certain tax deductions and credits: