How is modified adjusted gross income calculated?


Q. I understand that my Medicare Part B premiums may be greater than the base amount if my modified adjusted gross income is greater than a certain amount. How is modified adjusted gross income calculated?

A. To calculate your modified adjusted gross income (MAGI), take your adjusted gross income (AGI) and add some deductions. Depending on your deductions, it is possible that your MAGI and your AGI are the same. Here are the deductions you add to your AGI in order to get your MAGI.

  • ½ of the self-employment tax
  • Passive loss or passive income
  • The section 137 deduction for adoption expenses
  • Student loan interest
  • IRA contributions
  • Rental losses
  • Eligible tuition fees
  • Income exclusion from U.S. savings bonds
  • Taxable social contributions
  • Deductions for tuition and fees
  • Overall losses of a listed partnership

Agencies may ask John Grobe, or another qualified Federal Career Experts instructor, to deliver a retirement or transition seminar for their employees. CFE instructors are not financial advisors and will not sell or recommend any financial products to course participants. Agency benefits officers can contact John Grobe at [email protected] to discuss schedules and costs.

© 2021 John Grobe. All rights reserved. This article may not be reproduced without the express written consent of John Grobe.

Keywords MAGI, Health insurance

About the Author

John Grobe is President of Federal career experts, a company that offers pre-retirement training and seminars to a wide variety of federal agencies. FCE instructors are all retired Federal Retirement Specialists who educate participants on the ins and outs of Federal Retirement and Benefits; there is never an attempt to influence participants to invest in a certain way or to buy financial products. John and FCE specialize in retirement for special category employees, such as law enforcement officers.

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