MAGI: How to Calculate Modified Adjusted Gross Income
Last updated 06/09/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
MAGI, or modified adjusted gross income, is your adjusted gross income with certain deductions and excluded income added back, used to decide eligibility for many tax breaks and benefits.
It is the income figure that controls who can claim a wide range of credits and contributions.
- The starting point: Your adjusted gross income (AGI) from your tax return.
- The adjustment: Add back items like student loan interest, foreign income, and some IRA deductions.
- What it controls: Roth IRA eligibility, IRA deduction limits, and marketplace health insurance subsidies.
- The twist: The exact add-backs change depending on which benefit you are testing.
You can have one adjusted gross income but several different MAGI figures in the same year. That is because each tax benefit defines its own version, which is why MAGI confuses even careful filers.
How MAGI relates to AGI
MAGI starts with your adjusted gross income and adds back specific deductions and types of income that were excluded. AGI is your total income minus adjustments like retirement contributions and student loan interest.
According to the IRS, MAGI is used to determine whether you qualify for certain tax benefits, and the items added back depend on the benefit in question.
For many taxpayers, MAGI is close to or the same as AGI, because the add-back items do not apply to them.
What gets added back to calculate MAGI
To find MAGI, you take AGI and add back certain amounts you subtracted or excluded earlier. The common add-backs cover deductions and foreign-related income.
- Student loan interest deduction: Added back for several MAGI calculations.
- Foreign earned income exclusion: Income excluded under the foreign rules is added back.
- Traditional IRA deduction: Added back when testing Roth IRA eligibility.
- Tax-exempt interest: Added back for benefits like marketplace subsidies.
Because each provision lists its own add-backs, the safest approach is to use the worksheet for the specific benefit you are claiming.
Why MAGI matters for Roth IRAs
MAGI decides whether you can contribute to a Roth IRA and how much. As income rises through a phase-out range, the allowed contribution shrinks and then disappears.
For 2025, the Roth IRA phase-out runs from $150,000 to $165,000 for single filers and $236,000 to $246,000 for married couples filing jointly.
| 2025 filing status | Roth IRA MAGI phase-out |
|---|---|
| Single or head of household | $150,000 to $165,000 |
| Married filing jointly | $236,000 to $246,000 |
| Married filing separately | $0 to $10,000 |
Above the top of your range, a direct Roth IRA contribution is off the table, though other strategies may still be available.
Pro Tip
Before assuming you earn too much for a tax break, run the actual MAGI worksheet rather than using AGI. Pre-tax contributions to a 401(k) or HSA lower AGI and often pull MAGI back under a threshold, restoring a credit or contribution you thought you had lost.
Other benefits of using MAGI
MAGI controls eligibility for far more than Roth IRAs. It is the income test behind several common credits and deductions.
- Marketplace health insurance: MAGI sets the premium tax credit and subsidy amount.
- Traditional IRA deduction: MAGI limits the deduction when you have a workplace plan.
- Education credits: MAGI phases out the American Opportunity and Lifetime Learning credits.
- Net investment income tax: MAGI above a threshold triggers the 3.8% surtax.
Each of these uses its own MAGI definition, so a figure that works for one test may not apply to another.
How to calculate your MAGI
- Find your AGI: Locate adjusted gross income on your Form 1040.
- Identify the benefit: Determine which credit or contribution you are testing.
- List the add-backs: Use that benefit’s worksheet to find which items to add back.
- Add them to AGI: Sum AGI and the required add-backs to get MAGI.
- Compare to the limit: Check your MAGI against the threshold for that benefit.
Most tax software calculates MAGI automatically for each benefit, but knowing the figure helps you plan contributions before year-end.
Related reading on income and taxes
- Adjusted gross income: the starting point for every MAGI calculation.
- Roth IRA: the retirement account whose eligibility hinges on MAGI.
- Marketplace health insurance: where MAGI sets your subsidy amount.
- Net investment income tax: the 3.8% surtax triggered by high MAGI.
Frequently asked questions
What is the difference between AGI and MAGI?
AGI is your total income minus adjustments such as retirement contributions and student loan interest. MAGI takes that AGI and adds back certain deductions and excluded income to test eligibility for specific tax benefits.
How do I find my MAGI?
Start with the AGI on your Form 1040, then add back the items the specific benefit requires, such as student loan interest or foreign earned income. The exact add-backs depend on which credit or contribution you are calculating.
What is the MAGI limit for a Roth IRA in 2025?
For 2025, the Roth IRA contribution phases out between $150,000 and $165,000 for single filers and between $236,000 and $246,000 for joint filers. Above the top of the range you cannot contribute directly.
Is MAGI the same for every tax benefit?
No. Each benefit defines its own MAGI with its own add-backs, so your MAGI for a Roth IRA can differ from your MAGI for marketplace subsidies. Always use the worksheet tied to the benefit you are claiming.
Can lowering my MAGI help me qualify for tax breaks?
Yes. Pre-tax contributions to accounts like a 401(k) or HSA reduce AGI, which often lowers MAGI below a threshold. That can restore a credit, deduction, or contribution you would otherwise lose.
Key takeaways
- MAGI is your AGI with certain deductions and excluded income added back.
- It determines eligibility for Roth IRAs, IRA deductions, education credits, and marketplace subsidies.
- For 2025, the Roth IRA phase-out is $150,000 to $165,000 single and $236,000 to $246,000 joint.
- Each benefit uses its own MAGI definition, so the figure can change by benefit.
- Lowering AGI through pre-tax contributions can pull MAGI under a threshold.
MAGI sits at the center of year-end tax planning for retirement and credits. You can compare tax preparation and filing services to confirm your MAGI is calculated correctly for each benefit you claim.
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