Modified Adjusted Gross Income (MAGI)

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 the Saver’s credit
  • 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

   

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