Modified adjusted gross income (MAGI) is your adjusted gross income (AGI) with certain deductions and exclusions added back in, and it is the income figure the IRS and other agencies use to decide whether you qualify for a long list of tax benefits and programs. The important twist most people miss: there is no single MAGI. Each provision defines its own version, so the same person can have several different MAGI numbers in the same year.
MAGI equals your AGI (Form 1040, line 11) with provision-specific items added back, such as tax-exempt interest and certain exclusions. There is no MAGI line on your return; each tax benefit uses its own worksheet. Example: 2026 Medicare IRMAA surcharges start above $109,000 for single filers and $218,000 for joint filers (Source: SSA POMS HI 01101.020, updated 12/02/2025).
What is modified adjusted gross income (MAGI)?
Modified adjusted gross income is your AGI recalculated by adding back specific deductions and excluded income that a particular tax rule tells you to ignore. The purpose is to give agencies a more complete picture of your resources when they test eligibility for a credit, deduction, or program (Source: IRS, “Modified Adjusted Gross Income” overview, irs.gov/credits-deductions/modified-adjusted-gross-income).
Talk With Craig Wear's Team
Craig has helped IRA millionaires save over $1 million each in unnecessary taxes. Find out if a Roth conversion strategy fits your retirement, with no sales pressure and no product pitch.
A defining feature to understand is that MAGI is not one fixed number. The traditional IRA rules, the Roth IRA rules, the Premium Tax Credit, the Net Investment Income Tax, and Medicare each define MAGI slightly differently. The IRS states this directly for retirement accounts: “Your modified AGI for Roth IRA purposes is your adjusted gross income (AGI) as shown on your return with some adjustments” (Source: IRS Publication 590-A).
Because the add-backs differ by provision, you may qualify for one benefit and phase out of another at the same income level. That is why a year-labeled, provision-by-provision approach matters more than a one-size figure.
MAGI vs AGI: what is the difference?
AGI is a defined line on your tax return; MAGI is a calculation you build from it for a specific purpose. MAGI always equals or exceeds AGI, because MAGI starts with AGI and only adds items back, never subtracts core income. For many taxpayers who have no tax-exempt interest, foreign income, or the specific deductions being added back, MAGI and AGI are close or identical (Source: IRS Publication 590-A; IRS Form 8962 Instructions).
| Feature | AGI (Adjusted Gross Income) | MAGI (Modified AGI) |
|---|---|---|
| On the tax return? | Yes, Form 1040 line 11 | No; computed on a per-provision worksheet |
| Single definition? | Yes | No; varies by tax benefit or program |
| Relationship | Base figure | Equals or exceeds AGI |
| Typical use | Starting point for taxable income | Eligibility and phase-out testing |
Where do I find my MAGI on my tax return?
You will not find MAGI printed anywhere on your tax return, because it is not a return line. You start with AGI on Form 1040 (or 1040-SR) line 11, then rebuild MAGI using the worksheet for whatever provision you are testing. Common worksheets appear in IRS Publication 590-A (IRA and Roth), Form 8962 Instructions (Premium Tax Credit), and Form 8960 Instructions (Net Investment Income Tax) (Source: IRS, tax year 2025 forms and publications).
Adjustments that feed into AGI, and therefore into every MAGI calculation, are reported on Schedule 1 of Form 1040. Foreign income exclusions run through Form 2555. Because each provision references a different worksheet, the practical step is to identify the benefit first, then follow that worksheet.
How do I calculate my modified adjusted gross income?
Calculating MAGI is a two-part process. First, locate your AGI on Form 1040 line 11. Second, add back the specific items the provision you are testing names in its worksheet. The general steps are the same across provisions, and only the add-back list changes. The result is then compared to that provision’s threshold or phase-out range for the correct tax year.
- Find your AGI on Form 1040 line 11.
- Identify the tax benefit or program you are testing (for example, Roth IRA eligibility, the Premium Tax Credit, or Medicare IRMAA).
- Pull the MAGI worksheet for that provision from the relevant IRS publication or form instructions.
- Add back the deductions and excluded income that provision lists.
- Compare the result to that provision’s threshold or phase-out range for the correct tax year.
Common MAGI add-backs
Different provisions add back different items, but the same handful of deductions and exclusions appear repeatedly across the worksheets. For the traditional IRA deduction, MAGI starts from AGI and is then refigured without the items listed below, so the figures fed into the phase-out test reflect those add-backs (Source: IRS Publication 590-A, Worksheet 1-1, tax year 2025):
- The IRA deduction itself
- The student loan interest deduction
- The foreign earned income exclusion
- The foreign housing exclusion or deduction
- The exclusion of qualified U.S. savings bond interest (Form 8815)
- The exclusion of employer-provided adoption benefits (Form 8839)
Other provisions add their own items. The Premium Tax Credit adds tax-exempt interest, excluded foreign earned income, and the nontaxable portion of Social Security benefits (Source: IRS Form 8962 Instructions). Medicare IRMAA adds tax-exempt interest to AGI (Source: SSA POMS HI 01101.010). The Net Investment Income Tax adds back the foreign earned income exclusion, net of related deductions (Source: IRS Form 8960 Instructions).
The same person, three different MAGIs: a worked example
Because each provision defines MAGI differently, one taxpayer can carry several MAGI figures in a single year. Consider a hypothetical joint-filing couple with AGI of $210,000, plus $8,000 of tax-exempt municipal bond interest and $12,000 of nontaxable Social Security benefits. Their MAGI changes depending on which rule is being applied, as the illustration below shows.
| Provision | Add-backs applied | Resulting MAGI |
|---|---|---|
| Roth IRA eligibility (2026) | None of these three items apply; tax-exempt interest is not added | $210,000 |
| Medicare IRMAA (per year of return used) | Add $8,000 tax-exempt interest | $218,000 |
| Premium Tax Credit | Add $8,000 tax-exempt interest plus $12,000 nontaxable Social Security | $230,000 |
The takeaway is that quoting a single MAGI number can be misleading. Confirming which provision you are testing is the step that determines the figure that matters.
MAGI and IRA and Roth IRA limits (2025 and 2026)
MAGI decides whether you can deduct a traditional IRA contribution and whether you can contribute to a Roth IRA at all. Both use phase-out ranges that shift each year for inflation. Within the range, your allowed amount is reduced; above it, the benefit is gone for that account type (Source: IRS Publication 590-A; IRS Notice 2025-67).
| Provision and filing status | 2025 MAGI phase-out | 2026 MAGI phase-out |
|---|---|---|
| Traditional IRA deduction, single/HoH (covered by a plan) | $79,000 to $89,000 | $81,000 to $91,000 |
| Traditional IRA deduction, MFJ (contributor covered) | $126,000 to $146,000 | $129,000 to $149,000 |
| Traditional IRA deduction, non-covered spouse | $236,000 to $246,000 | $242,000 to $252,000 |
| Roth IRA contribution, single/HoH | $150,000 to $165,000 | $153,000 to $168,000 |
| Roth IRA contribution, MFJ | $236,000 to $246,000 | $242,000 to $252,000 |
For 2026, the IRA contribution limit is $7,500, with a $1,100 catch-up for those age 50 and older, for a total of $8,600 (Source: IRS Notice 2025-67). One detail specific to Roth MAGI: income from a Roth conversion or a rollover from a qualified plan is subtracted, so a conversion does not count against your Roth contribution eligibility limit (Source: IRS Publication 590-A). For readers weighing conversions, see our overview of Roth conversion planning and the 2026 Roth conversion statistics.
What is MAGI for Medicare (IRMAA)?
Medicare uses MAGI to set income-related monthly adjustment amounts (IRMAA), the surcharges added to Part B and Part D premiums for higher-income beneficiaries. For IRMAA, MAGI equals AGI plus tax-exempt interest, and Medicare uses your tax return from two years earlier. So 2026 IRMAA is based on your 2024 return, or your 2023 return if 2024 is unavailable (Source: SSA POMS HI 01101.010 and HI 01101.020).
This two-year lookback is one reason IRMAA is a consequential real-world use of MAGI. The 2026 standard Part B premium is $202.90 per month, with a $283 annual deductible (Source: CMS 2026 Parts A & B Premiums fact sheet). Surcharges apply above the first bracket.
| 2026 MAGI, single/HoH | 2026 MAGI, MFJ | Total Part B premium/month | Part D IRMAA add-on/month |
|---|---|---|---|
| ≤$109,000 | ≤$218,000 | $202.90 | $0 |
| Over $109,000 to $137,000 | Over $218,000 to $274,000 | $284.10 | $14.50 |
| Over $137,000 to $171,000 | Over $274,000 to $342,000 | $405.80 | $37.50 |
| Over $171,000 to $205,000 | Over $342,000 to $410,000 | $527.50 | $60.40 |
| Over $205,000 to under $500,000 | Over $410,000 to under $750,000 | $649.20 | $83.30 |
| ≥$500,000 | ≥$750,000 | $689.90 | $91.00 |
Because the brackets are cliffs, crossing a threshold by even one dollar can raise premiums for the year. Our detailed Medicare IRMAA 2026 brackets and premiums guide breaks down each tier.
MAGI for other credits and taxes
MAGI also governs several credits and an investment surtax, and each one carries its own threshold and its own definition of what gets added back. The values below carry their own tax-year labels and primary sources, so read each line against the provision it names rather than as a single figure.
- Net Investment Income Tax (NIIT): a 3.8% tax on the smaller of net investment income or the amount your MAGI exceeds a fixed threshold: $250,000 MFJ, $200,000 single/HoH, and $125,000 MFS. These thresholds are set by statute and are not indexed for inflation (Source: 26 U.S.C. 1411; IRS Form 8960 Instructions; IRS Topic No. 559). See our NIIT 2026 overview.
- Premium Tax Credit (ACA marketplace): eligibility is generally 100% to 400% of the federal poverty line, measured by household MAGI, with an applicable-percentage cap of 8.5% for income above 400% under current law reflected in the instructions (Source: IRS Form 8962 Instructions).
- Taxation of Social Security benefits: a separate “combined income” test can make a portion of benefits taxable once income passes statutory base amounts. The mechanism is defined by statute rather than by any single MAGI worksheet (Source: 26 U.S.C. 86; IRS Publication 915). This interaction can create the effect described in our Social Security tax torpedo explainer.
How can I reduce my MAGI?
Because MAGI starts from AGI, approaches that lower AGI generally lower MAGI too, though the effect depends on the provision and your circumstances. The rules allow several avenues, and whether any of them fits a given situation is a question to weigh with a qualified professional. The items below describe factors to consider, not recommendations.
- Contributing to a pre-tax 401(k) or other workplace plan can reduce AGI, since those elective deferrals are excluded from wages (Source: 26 U.S.C. 402(g); IRS Publication 590-A).
- Making deductible traditional IRA contributions may reduce AGI when eligibility rules are met (Source: IRS Publication 590-A).
- Contributing to a Health Savings Account can reduce AGI for those with qualifying high-deductible coverage, because the deduction is taken in figuring AGI (Source: 26 U.S.C. 223).
- Using qualified charitable distributions (QCDs) from an IRA can keep those amounts out of AGI for eligible IRA owners who have reached the age the statute specifies (Source: 26 U.S.C. 408(d)(8)).
- Timing capital gains, harvesting capital losses, or spacing a Roth conversion across years are approaches some taxpayers use to manage which bracket their MAGI lands in for a given provision.
Because IRMAA relies on a two-year lookback and IRA rules use current-year MAGI, the year in which income lands can matter as much as the amount. Related planning topics include required minimum distributions and 2026 retirement contribution limits.
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This article is educational and is not advice; for guidance on your own circumstances, consult a qualified tax or financial professional.
Frequently asked questions
Is MAGI the same as AGI?
No. AGI is a specific line on your tax return (Form 1040, line 11), while MAGI is that AGI with certain deductions and exclusions added back for a particular tax rule. MAGI always equals or exceeds AGI, and for taxpayers with none of the add-back items, the two can be identical (Source: IRS Publication 590-A).
How do I calculate my modified adjusted gross income?
Start with your AGI on Form 1040 line 11, identify the specific tax benefit you are testing, then add back the items its worksheet names. For a traditional IRA deduction, you add back the IRA deduction, student loan interest, the foreign earned income and housing exclusions, and certain U.S. savings bond and adoption benefit exclusions, and then you compare the result to that year’s phase-out range (Source: IRS Publication 590-A, Worksheet 1-1).
Where do I find my MAGI on my tax return?
MAGI is not on your tax return. There is no MAGI line. You begin with AGI on Form 1040 line 11 and rebuild MAGI using the worksheet for the specific provision, found in IRS Publication 590-A, Form 8962 Instructions, or Form 8960 Instructions depending on the benefit (Source: IRS, tax year 2025 forms and publications).
What is included in modified adjusted gross income?
MAGI includes your AGI plus provision-specific add-backs, and the exact list depends on which rule you are testing. Common items are tax-exempt interest, the foreign earned income and housing exclusions, the student loan interest and IRA deductions, and certain savings bond and adoption exclusions. For some rules, such as the Premium Tax Credit, nontaxable Social Security benefits are also added back (Source: IRS Publication 590-A; IRS Form 8962 Instructions).
Do you pay taxes on AGI or MAGI?
Neither directly. Income tax is calculated on taxable income, which is AGI minus your standard or itemized deduction. MAGI is used to test eligibility for credits, deductions, and programs, and to apply surtaxes like the 3.8% Net Investment Income Tax, rather than to compute your base income tax (Source: IRS Form 8960 Instructions; 26 U.S.C. 1411).
How can I reduce my MAGI?
Because MAGI starts from AGI, approaches that lower AGI often lower MAGI, depending on the provision. The rules allow pre-tax 401(k) deferrals, deductible IRA and HSA contributions, and qualified charitable distributions for eligible taxpayers. Timing capital gains, harvesting losses, and spacing Roth conversions are other approaches to weigh (Source: IRS Publication 590-A; 26 U.S.C. 223; 26 U.S.C. 408(d)(8)).
What is MAGI for Medicare (IRMAA)?
For Medicare IRMAA, MAGI equals AGI plus tax-exempt interest, measured from your tax return two years earlier. So 2026 IRMAA uses your 2024 return. Surcharges begin above $109,000 for single filers and $218,000 for joint filers in 2026, adding to Part B and Part D premiums (Source: SSA POMS HI 01101.010 and HI 01101.020, updated 12/02/2025).
What is the difference between AGI and MAGI on your taxes?
AGI is a single, defined figure on your return; MAGI is a purpose-built recalculation that adds items back. There is no one MAGI, since the traditional IRA, Roth IRA, Premium Tax Credit, NIIT, and Medicare rules each define it differently. MAGI never falls below AGI (Source: IRS Publication 590-A; IRS Form 8962 and Form 8960 Instructions).
Sources
IRS, Modified Adjusted Gross Income overview (irs.gov/credits-deductions/modified-adjusted-gross-income). IRS Publication 590-A, Contributions to Individual Retirement Arrangements (irs.gov/publications/p590a). IRS Notice 2025-67, 2026 retirement plan and IRA limits (irs.gov/pub/irs-drop/n-25-67.pdf); IRS newsroom summary (irs.gov/newsroom). IRS Form 8960 Instructions, Net Investment Income Tax (irs.gov/instructions/i8960); 26 U.S.C. 1411 (law.cornell.edu/uscode/text/26/1411); IRS Topic No. 559 (irs.gov/taxtopics/tc559). IRS Form 8962 Instructions, Premium Tax Credit (irs.gov/instructions/i8962). IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits (irs.gov/publications/p915); 26 U.S.C. 86 (law.cornell.edu/uscode/text/26/86). 26 U.S.C. 223, Health Savings Accounts (law.cornell.edu/uscode/text/26/223). 26 U.S.C. 402(g), elective deferral limits (law.cornell.edu/uscode/text/26/402). 26 U.S.C. 408(d)(8), qualified charitable distributions (law.cornell.edu/uscode/text/26/408). SSA POMS HI 01101.010 and HI 01101.020, Medicare IRMAA (secure.ssa.gov/poms.nsf). CMS 2026 Parts A & B Premiums fact sheet (cms.gov/newsroom).
About the author
Disclaimer
This article is provided by Q3 Advisors for educational and informational purposes only. It is not tax, legal, or investment advice, and it is not a recommendation to buy, sell, or hold any security or to pursue any specific strategy. Tax rules and dollar thresholds change and depend on individual circumstances; the figures here are labeled by year and drawn from the named primary sources as of the review date. Consult your own qualified tax, legal, or financial professional before acting. Q3 Advisors is a registered investment adviser; additional information is available in our Form ADV.
