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Modified Adjusted Gross Income (MAGI)

Last Updated November 13, 2012

Definition

Modified Adjusted Gross Income (MAGI) is an individual's adjusted gross income  without taking into account any of the following amounts.

  • IRA deduction.
  • Student loan interest deduction.
  • Tuition and fees deduction.
  • Domestic production activities deduction.
  • Foreign earned income exclusion.
  • Foreign housing exclusion or deduction.
  • Exclusion of qualified savings bond interest shown on Form 8815.
  • Exclusion of employer-provided adoption benefits shown on Form 8839.

Referring Cite

IRC § 219(g), IRC § 408(a), IRC § 408A, IRC § 530.

Additional Helpful Information

  • MAGI is used to determine the following:
    • An active participant’s eligibility for deducting a contribution to a Traditional IRA
    • Eligibility for making a contribution to a Roth IRA
    • Eligibility for contributing to a Coverdell Education Savings Account (CESA)
    • Eligibility to convert to a Roth IRA . Taxable distributions are not included in the recipient’s MAGI for purposes of determining eligibility for a Roth IRA conversion ( Note: This rule no longer applies as of January 1, 2010, as the $100,000 MAGI income that applied to Roth IRA conversion was repealed as of January 1, 2010)

Please see IRS Publication 590 for Worksheets and step-by-step instructions on how to compute your MAGI http://www.irs.gov/pub/irs-pdf/p590.pdf