English

MAGI Calculator

In the US, subtracting the gross salary of a person from certain deductions is called as the adjustable gross income(AGI). Modified Adjusted Gross Income is where, certain items like foreign-housing deductions, student-loan deductions, IRA-contribution deductions are added to AGI. This MAGI calculator helps you in Modified Adjusted Gross Income calculation with the known values of adjustable tax income, non–taxable social security benefits, tax-exempt interest and excluded foreign income.

\$
\$
\$
\$
\$

In the US, subtracting the gross salary of a person from certain deductions is called as the adjustable gross income(AGI). Modified Adjusted Gross Income is where, certain items like foreign-housing deductions, student-loan deductions, IRA-contribution deductions are added to AGI. This MAGI calculator helps you in Modified Adjusted Gross Income calculation with the known values of adjustable tax income, non–taxable social security benefits, tax-exempt interest and excluded foreign income.

Formula:

MAGI = AGI + NT + TI + FI Where, MAGI = Modified Adjusted Gross Income (MAGI) AGI = Adjusted Gross Income (AGI) NT = Non-Taxable Social Security Benefits TI = Tax-Exempt Interest FI = Excluded Foreign Income Note: AGI : As defined by the IRS, AGI is Gross income minus adjustments to income NT : Social security benefits not included in gross income TI : Interest income that is not subject to federal income tax FI : Foreign earned income excluded from taxation of individuals who live in abroad

Example:

What will be the modified adjusted gross income if the adjusted gross income is \$400000, non-taxable social security benefits is \$300000, tax exempt interest is 10000 and excluded foreign income is \$30000.

Solution:

MAGI = AGI + NT + TI + FI
= 400000 + 30000 + 10000 + 30000
= \$740000