Here are other deductions to add back to your adjusted gross income: Not many people have these deductions, so your MAGI and your adjusted gross income may be similar or even the same amount. These include excluded foreign income, adoption expense exclusions, passive loss and passive income. Add back any deductions or expenses to your adjusted gross incomeĪfter calculating your adjusted gross income, add back certain adjustments to get your MAGI. Read more: How To Calculate Your Adjusted Gross Income (AGI) 3.

Moving expenses if you're in the armed forces Loss from a publicly traded company or organization partnershipĬontributions to a health savings account (HSA) Here are some examples of expenses that you can deduct: Most tax returns provide your adjusted gross income, so you can also simply look at it to obtain this number.

The amount you have after subtracting these expenses from your net income is your adjusted gross income for the year. To calculate your adjusted gross income, subtract all tax-deductible expenses from your total income. Once you know your net income for the fiscal year, you can calculate your adjusted gross income. Related: Operating Income, Net Income and Net Operating Income: Definitions 2. If you're self-employed or receive money from sources other than your employer, make sure to add this to your calculation. Then, add all your income together to get your total income for the year. You can find most of this information on your tax return or W-2 form. Determine how much you madeĭetermine all income and other forms of payment you received. You can follow these steps to determine your MAGI for the fiscal year: 1. Related: What Is Adjusted Gross Income? Plus How To Calculate It How to calculate modified adjusted gross income Your MAGI can also allow you to determine whether you qualify for certain government programs. To deduct your IRA contributions if you have a retirement plan through your place of employmentįor Medicaid or other subsidized health insurance plans available in the health insurance marketplaceįor any income tax credits or education tax benefitsĬalculating your MAGI can help ensure you pay the correct amount of taxes, as over-contributing to these programs and other ones can lead to fines and interest payments. To contribute to a Roth individual retirement account (IRA) Your MAGI can help you determine whether you're eligible: This income calculation is similar to adjusted gross income (AGI), except it includes the addition of certain deductions. Modified adjusted gross income is a household's total income after making adjustments for deductions and tax-exempt interest income.

Adjusted gross income on w2 calculator