MAGI Calculator

MAGI — Modified Adjusted Gross Income — starts from your AGI and adds back specific deductions that were subtracted to reach it. It determines eligibility for a long list of tax benefits, so getting it right is often the difference between claiming a benefit and losing it entirely — these tests are usually "yes/no" gates, not sliding scales.

The chain of income measures

To see where MAGI sits, follow the income ladder:

Gross income
− above-the-line deductions = AGI
− standard/itemized deductions = taxable income

MAGI is a different branch: take AGI and add back certain above-the-line deductions that were granted for benefits, then test the result against benefit limits. It is deliberately "modified" to stop people from dodging benefit caps by hiding income in tax-preferred deductions.

The basic formula

MAGI = AGI + add-backs

Your AGI (Adjusted Gross Income) is your gross income minus "above-the-line" deductions. For MAGI, the most common deductions that must be added back are:

• Traditional IRA contributions
• Student loan interest
• Tax-exempt foreign earned income and housing
• Rent and other amounts claimed by US expats
• Certain education-related deductions (tuition and fees, where claimed)

Note that not every benefit uses the same list. An IRA contribution is added back for one test but ignored for another, so "my MAGI" is actually several different numbers depending on what you are applying for.

Example

An AGI of ₹12,00,000 (use your local return's figure) with ₹50,000 of IRA contributions to add back:

MAGI = 12,00,000 + 50,000 = ₹12,50,000

That single IRA deduction, subtracted to keep your taxable income low, comes right back for the MAGI test — which is why a high AGI earner can't simply max an IRA to squeeze under a Roth limit.

Why MAGI matters

MAGI gates things like:

• Roth IRA contribution eligibility (income phase-out ranges — above the ceiling, contributions are not allowed)
• Healthcare premium tax credits and subsidies (one key reason a modest raise can feel like a pay cut near a cliff)
• Saver's credit and some education credits
• Medicare premium surcharges (the IRMAA income brackets)

Practical guidance

• Find your AGI first (it's pre-printed on your US return); then ask which program you're testing before deciding what to add back.
• Check the specific year's income limits — they are inflation-indexed each year, and they differ for single, married-filing-jointly and heads of household.
• If you're near a threshold, small moves (like deferring a bonus or a deductible contribution year) can pull MAGI under a ceiling, but strategies differ per benefit — test each gate separately.

Note

The exact add-backs differ by benefit. This calculator handles the common US-style case; for your specific scheme, check which items the relevant rule asks you to add back.