Definition
Modified Adjusted Gross Income (MAGI) is an individual’s adjusted gross income without taking into account any of the following amounts.
- IRA deduction.
- Student loan interest deduction.
- Tuition and fees deduction.
- Domestic production activities deduction.
- Foreign earned income exclusion.
- Foreign housing exclusion or deduction.
- Exclusion of qualified savings bond interest shown on Form 8815.
- Exclusion of employer-provided adoption benefits shown on Form 8839.
Referring Cite
IRC § 219(g), IRC § 408(a), IRC § 408A, IRC § 530.
Additional Helpful Information
- MAGI is used to determine the following:
- An active participant’s eligibility for deducting a contribution to a Traditional IRA
- Eligibility for making a contribution to a Roth IRA
- Eligibility for contributing to a Coverdell Education Savings Account (CESA)
- Eligibility to convert to a Roth IRA . Taxable distributions are not included in the recipient’s MAGI for purposes of determining eligibility for a Roth IRA conversion ( Note: This rule no longer applies as of January 1, 2010, as the $100,000 MAGI income that applied to Roth IRA conversion was repealed as of January 1, 2010)
Please see IRS Publication 590-A and B for Worksheets and step-by-step instructions on how to compute your MAGI , as well as other IRA information. http://www.irs.gov and search for 590
