Modified adjusted gross income

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Modified Adjusted Gross Income

In the United States, the amount of income used to determine how much of a taxpayer's IRA contributions are tax deductible. One calculates the modified AGI by taking the adjusted gross income and adding back various deductions, notably interest on student loans, foreign income deductions, foreign housing deductions, and higher education costs. Depending on the modified AGI, some or all of one's IRA contributions will not be deductible.

Modified adjusted gross income (MAGI).

Your modified adjusted gross income (MAGI) is your adjusted gross income (AGI) plus deductions, such as college loan interest and contributions to a deductible individual retirement account (IRA), which you may qualify to take if your MAGI is less than the annual ceilings set by Congress.

Other deductions, such as alimony, don't have income limits.

For example, suppose you're single, have a gross income of $51,000, and you're eligible to take a deduction for your IRA contribution of $4,000. Your AGI, when all deductions are taken, turns out to be $45,500. You then add the $4,000 back to find your MAGI of $49,500. Because your MAGI is less than the ceiling for deducting your full IRA contribution for your filing status, you can take the full deduction.

References in periodicals archive ?
Let us follow the advice and the way of acting of the Magi in the Gospel.
Example 3: Carol Davis, a single taxpayer who participates in a 401 (k), had MAGI of $220,000 in 2018.
The deduction applies if MAGI does not exceed $65,000 if single or $130,000 if married filing jointly.
In a world growing more complex and ethically confused (false news, post-truth, accelerations in many fields, etc.) and more violent and mean (terrorism, reemerging racism, fascism, bigotry, cyber-bullying), we need the wisdom of Magi who will lead us back to the Child in the manger.
Let's imitate the fidelity and persistence of the Magi. The Lord said: "He who perseveres to the end will receive the crown of Eternal Life."
The story of the Magi offers a particular witness to First World people today.
Of course, income received on a tax-free basis in retirement is not included in calculating a client's MAGI. For clients who do not have access to tax-free sources of income in retirement (Roth accounts, for example), making a qualified charitable distribution (QCD) can help reduce postretirement MAGI to minimize Medicare's income-based surcharges.
Mae cyrraedd y fferm ym mhen draw Llyn yn brofiad digon brawychus, yn enwedig ar ol yr holl rybuddion a gawsai - "Lle ar y diawl ydi o", yn ol hen wraig a welodd Magi ar y ffordd yno.
Scholars of astronomy and theology organized a colloquium in Groningen, The Netherlands in October 2014 where they and scholars from other disciplines offered perspectives on the Star of Bethlehem and the Magi in the story of the birth of Jesus.
The magi, the Persian priests, interpreted this to mean that his grandsons would threaten his rule.
Magi admitted to having posted the photo but denied having written the incriminating text.