What is modified adjusted gross income (AGI)?

Your adjusted gross income, or AGI, is an important line item on your taxes, as it affects your eligibility for certain tax benefits. The same is true of your modified adjusted gross income, or MAGI. What is the difference between MAGI and AGI? Do you pay taxes on AGI or MAGI? How do you calculate AGI?

How do you calculate adjusted gross income (AGI)?

To calculate your AGI, you must first start with your gross income, which is any income you receive subject to taxation. You will then need to subtract your adjustments from your total gross income to calculate your AGI. Adjusted Gross Income (AGI) vs. Modified Adjusted Gross Income (MAGI): What’s the Difference?

How do I calculate modified adjusted gross income?

To calculate your modified adjusted gross income, take your AGI and "add-back" certain deductions. Many of these deductions can be rare, so it's possible your AGI and MAGI can be identical. Different credit and deductions can have differing add-backs for your MAGI calculation.