Your modified adjusted gross income or MAGI is used to determine your eligibility on a number of things. This includes several credits and deductions, Medicare Plan B premiums, and is most known for determining IRA deduction and Roth IRA contribution eligibility.
So, it’s a pretty important number to have handy. There’s just one problem. It’s not the easiest number to figure out.
What is MAGI?
Modified Adjusted Gross Income is your adjusted gross income (AGI) plus a few specific deductions. Since the number is entirely dependent on those deductions, it can change from year to year.
In order to find your modified adjusted gross income, you first need to find your adjusted gross income.
Find Your AGI
Your adjusted gross income is your total or gross income minus certain deductions, known as adjustments. Whether you know it or not, you figure this number out each year when you do your taxes. You can find it on: Continue Reading…