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AGI vs. MAGI: Whats the Difference? - Investopedia AGI is your total income modified by deductions It reduces your taxable income MAGI adds certain items, such as deductions and excluded income, to your AGI
Modified adjusted gross income (AGI): What it is how to . . . What is modified adjusted gross income (MAGI)? Your modified adjusted gross income (MAGI) represents your annual income once a number of adjustments and modifications have been made to it It’s essentially your adjusted gross income (AGI) with certain above-the-line deductions added back in
What is the difference between AGI and MAGI on Form 1040? Adjusted Gross Income (AGI is the number the IRS prints on line 11 of Form 1040 and is your total income minus specific adjustments) and Modified Adjusted Gross Income (MAGI) starts with AGI and then adds back certain deductions or excluded amounts — MAGI is not a single IRS line but a group of related calculations used to test eligibility
Adjusted Gross Income (AGI): What You Should Know | IRS. com AGI is usually a reduced version of your taxable income after certain deductions are made MAGI is your AGI after further subtractions or additions, such as IRA contributions, self-employment tax, and others Both AGI and MAGI are used by the IRS to determine whether you qualify for certain credits or additional deductions
Understanding MAGI vs AGI: Why These Tax Terms Matter While MAGI is used for specific thresholds and program eligibility, AGI is more commonly referenced in everyday tax planning It’s the starting point for determining your taxable income and whether you qualify for a variety of deductions and credits