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MAGI — Modified Adjusted Gross Income

Your AGI with certain deductions added back — used as the income gauge for many tax thresholds (Roth contribution limits, IRMAA, NIIT, EV credits, premium tax credit).

What it actually means

MAGI is calculated differently for each tax provision that uses it. Common adjustments added back to AGI: foreign earned income exclusion, student loan interest deduction, IRA contribution deduction, savings bond interest, employer adoption benefits. The exact formula varies — MAGI for Roth eligibility is computed differently than MAGI for IRMAA, which is computed differently than MAGI for NIIT.

Distinguishing it from look-alikes

MAGI is not a single number. It's a family of calculations that share the name. Tax software and CPAs handle this; for solo planning, confirm WHICH MAGI definition applies to the specific provision. The IRMAA-MAGI in particular is what trips up retirees — it includes tax-exempt muni interest (which is normally tax-free), so muni bonds can push you into a higher Medicare premium bracket.

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Examples

Roth IRA phase-out
Single filer MAGI > $146K (2026) starts to phase out direct Roth contributions; > $161K eliminates them.
IRMAA bracket
Medicare premium surcharge brackets are based on MAGI from 2 years prior.
NIIT
3.8% Net Investment Income Tax kicks in at MAGI > $200K single / $250K MFJ.
HowTo schema
Eligible for step-by-step rich results AND structured for AI extraction
llms.txt
Standard for declaring AI-crawler-friendly content + which AI agents are explicitly welcomed