What is the difference between AGI and MAGI on Form 1040?

1. What AGI is — the tax return’s headline income figure

Adjusted Gross Income is your total taxable income from wages, interest, dividends, business and other sources after you subtract allowable adjustments (such as educator expenses, student loan interest, certain retirement plan contributions); AGI appears on line 11 of Form 1040 and is the base number the IRS and tax software use to compute your tax liability and other downstream amounts ^{[3] [1]}.

2. What MAGI is — AGI “with add‑backs,” and there’s more than one MAGI

Modified Adjusted Gross Income is not a single fixed line on the 1040; it is the AGI with specific items added back in. Which items are added depends on the particular tax provision you’re testing — there are multiple MAGI definitions used for different credits, deductions and programs (for example, IRA deduction limits, premium tax credits, or new 2025 deductions) ^{[1] [4]}.

3. Typical add‑backs that make MAGI larger than AGI

Common items that taxpayers “add back” to AGI when calculating MAGI include tax‑exempt interest, foreign earned income exclusions, certain passive losses or income exclusions, and some deductions such as deductible student loan interest in particular MAGI tests; the exact list varies by program, so MAGI often equals AGI for many filers but can be higher when those items exist ^{[2] [5]}.

4. Why the difference matters — benefits, phaseouts, and program eligibility

MAGI is used as a stricter income test for eligibility and phaseouts: it determines whether you can deduct traditional IRA contributions when you or your spouse has a workplace retirement plan, whether you qualify for premium tax credits under the health law, and other credits or deductions. Because MAGI can exclude fewer items, it often yields a higher income figure that can limit access to benefits ^{[6] [2]}.

5. Practical steps: where to find AGI and how to get MAGI

Find AGI directly on line 11 of Form 1040; to get MAGI, start with that AGI and follow the IRS worksheet or the rules for the specific tax provision you’re dealing with — for instance, the IRS provides a “Figuring your modified AGI” worksheet for IRA deductibility and other publications explain which add‑backs apply for each benefit ^{[1] [2]}.

6. Common misunderstandings and why definitions vary

People often assume “MAGI” is one universal number printed on the return — it is not. Different laws and IRS rules define MAGI differently for different purposes (the “same” term is reused), so one MAGI calculation for an IRA deduction may differ from the MAGI used to determine eligibility for a new 2025 deduction or for premium tax credits ^{[4] [5]}.

7. Recent context: MAGI’s policy importance in 2025 changes

New tax provisions enacted in 2025 tie eligibility for several recently introduced deductions to MAGI; for those provisions the IRS defines MAGI by adding back items such as foreign earned income exclusions and amounts excluded because they were received from Puerto Rico or American Samoa — underscoring that MAGI’s precise definition matters for taking advantage of new rules ^[4].

8. How to proceed if you need to know your MAGI

If you need MAGI for a specific purpose, consult the IRS instructions or the worksheet associated with that credit/deduction, or use reputable tax software which applies the correct add‑backs for each test; if sources of excluded income or special deductions exist on your return, your MAGI may differ materially from your AGI ^{[1] [7]}.

Limitations: reporting on the topic shows consistent agreement that AGI is on line 11 and MAGI is AGI plus program‑specific add‑backs, but available sources do not list every possible add‑back for every MAGI definition — you must check the specific IRS guidance for the tax benefit you’re evaluating ^{[1] [4]}.