KBID 1461 Date Created: 6/8/2006 Date Modified: 8/22/2023
Terms of Use
AGI represents your taxable income. AGI is defined as gross income minus adjustments to income You can find your AGI at the bottom of page 1 on your income tax return, IRS Form 1040.
AGI is equal to the total income you report that’s subject to income tax such as earnings from your job, self-employment, dividends and interest from a bank account minus specific deductions you’re eligible to take. AGI does not include the standard deduction or itemized deductions.
Modified Adjusted Gross Income (MAGI)
MAGI represents your total earnings. The IRS uses your MAGI to determine your eligibility for certain deductions, credits and retirement plans, like eligibility for deductible IRA and Roth contributions.
MAGI is equal to your AGI before taking into account deductible IRA contributions. MAGI could also be affected by adding back the following: