Adjusted gross income Your adjusted gross income (AGI) is your total (gross) income from all sources minus certain adjustments listed on Schedule 1 of Form 1040. Your AGI is calculated before you take your standard or itemized deduction on Form 1040. Your modified adjusted gross income (MAGI) is your adjusted gross income with some of those adjustments added back. It determines whether you qualify for certain deductions, credits and other tax benefits, and how much you qualify for. MAGI is calculated differently for each benefit. Tax software calculates your AGI and MAGI for you. On this page When you need your AGI How to calculate your AGI Where to find your AGI Modified adjusted gross income When you need your MAGI Where to find your MAGI How to calculate your MAGI MAGI definitions for specific items When you need your AGI You may need your AGI to: Confirm your identity when you e-file your return Qualify for tax credits and other benefits How to calculate your AGI Start with your total (gross) income from all sources. This includes wages, tips, interest, dividends, capital gains, business income, retirement income and other forms of taxable income. From your gross income, subtract certain adjustments such as: Alimony payments Educator expenses Certain business expenses – reservists, performing artists, fee-based government officials Deductible HSA contributions Deductible IRA contributions Moving expenses – military only Deductible self-employment taxes Penalties on early savings withdrawal Retirement contributions Student loan interest Find all allowable adjustments on Part II of Form 1040 Schedule 1, Additional Income and Adjustments to Income PDF. AGI example Your income: $50,000 wages $12,000 rental income $8,500 wages as a part-time Uber driver $500 bond interest Your gross income = $71,000 Adjustments from gross income: $250 educator expenses $2,500 student loan interest Your total adjustments from gross income = $2,750 Your AGI is $68,250. It’s your total income ($71,000) less your total adjustments ($2,750). Where to find your AGI Your AGI is on Form 1040, U.S. Individual Income Tax Return, line 11. You can find last year’s AGI: In your Online Account On last year’s tax return – request a copy Modified adjusted gross income Your modified adjusted gross income (MAGI) is your adjusted gross income with certain adjustments added back. When you need your MAGI You use your modified adjusted gross income to calculate: Some credits, like the Child Tax Credit and Adoption Tax Credit Deductions for IRA contributions Amounts you can exclude from certain types of income like savings bond interest (income exclusion) Based on your MAGI, you get a different amount for each credit, deduction and exclusion. Where to find your MAGI You can find your general MAGI: In your Online Account On last year’s tax return – request a copy How to calculate your MAGI You calculate your MAGI based on the tax deduction or credit you’re taking. General MAGI calculation To figure your modified adjusted gross income, start with your AGI and add: IRA contributions Student loan interest – Form 1040, Schedule 1, line 21 Foreign earned income and housing exclusions - Form 2555, line 45 Foreign housing deduction or income exclusion - Form 2555, line 50 Savings bond interest excluded from your income - Form 8815, line 14 Adoption benefits excluded from your income - Form 8839, line 28 MAGI definitions for specific credits, deductions and taxes MAGI for the Child Tax Credit Take your AGI and add: Excluded income from Puerto Rico and American Samoa residents Foreign earned income and housing excluded from your income Foreign housing deduction Instructions for Schedule 8812 MAGI for education credits MAGI is calculated for these education benefits the same way: Education Tax Credit Lifetime Learning Credit American Opportunity Credit Coverdell Education Savings Account Take your AGI and add: Foreign earned income and housing excluded from your income Foreign housing deduction Puerto Rico and American Samoa residents’ excluded income Tax Benefits for Education, Publication 970 PDF Coverdell Education Savings Account Take your AGI and add: Student loan interest deduction Foreign earned income and housing excluded from your income Foreign housing deduction Puerto Rico and American Samoa residents’ income exclusions Employer-provided adoption benefits excluded from income Tax Benefits for Education, Publication 970 PDF MAGI for the Premium Tax Credit Take your AGI and add: Foreign earned income Tax-exempt interest Your nontaxable Social Security benefits Instructions for Form 8962, Premium Tax Credit (PTC) PDF MAGI for IRAs MAGI for traditional IRA deductions Take your AGI and add: Student loan interest deduction Excludable savings bond interest Employer-provided adoption benefits excluded from income Foreign earned income or housing excluded from income Foreign housing deduction For 2024, you can deduct your traditional IRA contributions subject to these MAGI income limits if you’re covered by a retirement plan at work: $123,001 - $143,000 if filing as married filing jointly or qualifying surviving spouse $77,001 - $87,000 if filing as single or head of household Less than $10,000 if filing as married filing separately Contributions to Individual Retirement Arrangements (IRAs), Publication 590-A (2023) MAGI for Roth IRA contributions Take your AGI and: Add traditional IRA deductions - Schedule 1 (Form 1040), line 20 Subtract income from converting an IRA (other than a Roth IRA) to a Roth IRA - Form 1040 or 1040-SR, line 4b Subtract rollovers from a qualified retirement plan to a Roth IRA - Form 1040 or 1040-SR, line 5b) For 2024, you can contribute to a Roth IRA if you have taxable compensation and MAGI less than the annual income amount for your filing status: Married filing jointly - $240,000 Married filing separately - $10,000 All others - $161,000 If your Roth calculated MAGI is more than the annual income amount for your filing status: You can refigure your AGI for these other income and losses that depend on your AGI for Roth IRA contributions: Social Security income – Find more in Contributions to Individual Retirement Arrangements (IRAs), Publication 590-A Passive activity losses MAGI for net investment income tax Use your MAGI to determine if you owe the net investment tax. Attach Form 8960, Net Investment Income Tax Individuals, Estates, and Trusts to your return if your MAGI is greater than the applicable threshold amount. Take your AGI, then add: Foreign earned income excluded from your income and adjustments for foreign investments Foreign earned income deductions Add or subtract the adjustment to gain or loss on the disposition of: A controlled foreign corporation (CFC) or qualified electing fund (QEF) An interest in a domestic partnership or S corporation that holds a CFC or QEF Instructions for Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts Related Taxable income
