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What adjustments are added to AGI to get MAGI?
Executive Summary
Modified Adjusted Gross Income (MAGI) is not a single formula; it starts with Adjusted Gross Income (AGI) and then adds back certain deductions and excluded/untaxed items so benefits and eligibility tests look at a broader measure of income [1] [2]. Which items are added back varies by the tax credit, deduction, or program being determined, but common additions include tax-exempt interest, foreign-earned income/housing exclusions, and certain above-the-line deductions like student loan interest and IRA contributions [3] [4].
1. What multiple sources claim when you “add” to AGI — a clear list emerges
Analyses converge on the basic claim that MAGI = AGI + specified add-backs, not a subtraction or separate tax base, and that the exact add-backs depend on the rule being applied. Several summaries explicitly list routine items that get added back: IRA contributions that reduced AGI, student loan interest deductions, one-half of self-employment tax, tuition-related deductions, and other above-the-line adjustments that lowered AGI in the first place [5] [6]. This framing emphasizes that MAGI is intentionally broader than AGI to capture otherwise excluded or deduction-driven reductions in income that would affect program eligibility. The sources present this as a consistent conceptual approach while noting the technical list varies by statute or program [1] [2].
2. The most consistently cited additions — tax-exempt and foreign items matter
Analyses repeatedly identify tax-exempt interest income and foreign earned income and housing exclusions as common MAGI add-backs. Health-care marketplace rules and many retirement-related eligibility tests treat excluded foreign income and tax-free interest as part of MAGI, because those amounts increase a household’s real resources even though they didn’t count in AGI [7] [4] [3]. This group of sources stresses that MAGI often ends up equal to or higher than AGI precisely because of these inclusions, which can push taxpayers over thresholds for credits, premium subsidies, and phaseouts [8] [4]. Multiple analyses present these items as central to the concept and central to disputes when eligibility hinges on narrow dollar ranges [3].
3. Program-by-program variation — the devil is in the statutory details
All sources underline that there is no single MAGI; it is a program-specific construct. For example, Roth IRA contribution limits, premium tax-credit eligibility, and Medicaid/Marketplace calculations use different prescribed add-backs. Some sources list IRA contributions and student loan interest specifically as MAGI add-backs for certain retirement and education rules, while others highlight untaxed foreign income and housing as critical for international filers and health care rules [1] [2] [3]. This plurality of formulations creates practical complexity: taxpayers appearing eligible under one MAGI definition may not qualify under another, and authoritative guidance must be checked for each benefit [5] [2].
4. Items often cited but context-dependent — watch the fine print
Sources flag several items that show up frequently in MAGI discussions but are not universally added: non-taxable Social Security benefits, certain exclusions or deductions for foreign housing, and net investment or capital items tied to specific tax rules. Some analyses explicitly state that Supplemental Security Income (SSI) is excluded from MAGI considerations, signaling purposeful exclusions as well as inclusions [4] [7]. The materials emphasize that lists circulated online can be incomplete or targeted to particular uses; therefore, simplistic checklists risk error. When a program’s rules reference MAGI, the statutory or agency guidance defines exactly which items to add back — that authority supersedes general summaries [2] [8].
5. Discrepancies, dates, and the need for current guidance — sources differ in emphasis
While the analytical set uniformly agrees on the conceptual approach — “addbacks to AGI” — the specific items named and the emphasis differ across sources and dates. Some summaries (with dates in early 2025 and late summer 2025) list detailed item-by-item add-backs like half self-employment tax and tuition deductions [6] [3], while other pieces focus on foreign and tax-exempt income or on program examples without exhaustively enumerating every possible add-back [7] [9]. These variations reflect the underlying reality that statutory language and agency guidance (which changed over time) determine the operative MAGI for each benefit. Users must consult the specific program’s latest guidance for authoritative lists [2] [1].
6. Practical takeaway — check the program, then the list
The core, actionable point across analyses is straightforward: start with your AGI, then add back the items specified by the program or credit you’re evaluating. Common candidates are tax-exempt interest, excluded foreign earned income and housing, IRA and retirement adjustments, student loan interest, tuition deductions, and certain self-employment tax adjustments, but none is universally required for every MAGI calculation [8] [5] [4]. Because program-specific rules create meaningful differences in eligibility outcomes, taxpayers and advisers should consult the relevant statutory or agency MAGI definition for the benefit in question rather than relying on general lists; this is the only way to convert the shared concept into an accurate, definitive number [2] [1].