MAGI Calculator (US)
Calculate MAGI by adding foreign income, tax-free interest, and IRA deductions to AGI. Check Roth IRA, Trad IRA, and Premium Tax Credits with 2025 IRS limits.
Add-Back Adjustments
About This Calculator
MAGI (Modified Adjusted Gross Income) is a key figure used by the IRS to determine eligibility for various tax benefits. It starts with your AGI and adds back certain deductions to reveal your true income for qualification purposes.
This free online calculator computes your MAGI by adding back up to six common adjustments: foreign earned income exclusion, tax-free interest (municipal bonds), non-taxable Social Security benefits, Traditional IRA deductions, student loan interest deductions, and other adjustments. It then compares your MAGI against 2025 IRS phaseout thresholds for Roth IRA contributions, Traditional IRA deductions, Premium Tax Credits, and the Child Tax Credit. Results update instantly and can be shared via a unique URL.
Why MAGI Matters
MAGI determines your eligibility for:
- Roth IRA contributions -- Phaseout starts at $150K (single) / $236K (married)
- Traditional IRA deductions -- Phaseout starts at $79K (single) / $126K (married) if covered by a workplace plan
- Premium Tax Credits -- Available up to 400% of the Federal Poverty Level
- Child Tax Credit -- Phaseout starts at $200K / $400K
- Medicare premiums (IRMAA) -- Higher MAGI means higher Part B and Part D premiums
How to Use
Enter your AGI, add any applicable adjustments, select your filing status, and click Calculate. Use the interactive stacked bar chart to visualize how each add-back contributes to your MAGI. The breakdown table shows each adjustment and the threshold comparison table shows your eligibility status for four key programs.
Frequently Asked Questions
What is MAGI and how is it different from AGI?
MAGI (Modified Adjusted Gross Income) starts with your AGI and adds back certain deductions like foreign earned income exclusion, tax-free interest, non-taxable Social Security benefits, Traditional IRA deductions, and student loan interest deductions. MAGI is used to determine eligibility for tax benefits like Roth IRA contributions, IRA deductions, and Premium Tax Credits.
Why does MAGI matter for Roth IRA contributions?
The IRS uses MAGI to determine if you can contribute to a Roth IRA. For 2025, single filers with MAGI under $150,000 can contribute the full amount. Contributions phase out between $150,000 and $165,000. Married filing jointly filers phase out between $236,000 and $246,000. Above these limits, you cannot contribute directly to a Roth IRA.
How does MAGI affect Traditional IRA deductions?
If you or your spouse are covered by a workplace retirement plan, your Traditional IRA deduction phases out based on MAGI. For 2025, single filers phase out between $79,000 and $89,000. Married filing jointly filers phase out between $126,000 and $146,000. Above these ranges, no deduction is allowed.
What is the MAGI limit for Premium Tax Credits?
To qualify for Premium Tax Credits through the Health Insurance Marketplace, your MAGI must be between 100% and 400% of the Federal Poverty Level. For a single person in 2025, this means MAGI between approximately $15,650 and $62,600. Households with MAGI above 400% FPL are not eligible for premium subsidies.
How does MAGI affect the Child Tax Credit?
The Child Tax Credit begins to phase out when your MAGI exceeds $200,000 for single or head of household filers, or $400,000 for married filing jointly. The credit is reduced by $50 for each $1,000 of MAGI above the threshold. This makes MAGI tracking important for families claiming the Child Tax Credit.
What adjustments get added back to calculate MAGI?
Common adjustments added back to AGI to calculate MAGI include: Foreign earned income exclusion (Form 2555), tax-exempt interest (municipal bond interest), non-taxable Social Security benefits, Traditional IRA deductions, student loan interest deductions, passive income or losses, and certain other deductions like tuition and fees.
How can I reduce my MAGI to qualify for tax benefits?
To lower your MAGI, consider: increasing pre-tax retirement contributions (401k, 403b, TSP), contributing to an HSA, using a Flexible Spending Account (FSA), deferring bonuses or capital gains, harvesting tax losses, and reducing business income with legitimate deductions. Lower MAGI can help you stay within phaseout limits for Roth IRAs and other credits.
Does MAGI affect Medicare premiums?
Yes, MAGI directly impacts Medicare Part B and Part D premiums through Income-Related Monthly Adjustment Amounts (IRMAA). For 2025, individuals with MAGI above $106,000 (or couples above $212,000) pay higher Medicare premiums. The surcharges increase at five income tiers, so monitoring your MAGI is important for retirement planning.