So if you want to determine your MAGI for a specific tax benefit, you have to know the right definition of MAGI for the purpose of that specific tax benefit. You also have to keep in mind that your MAGI can vary depending on the tax benefits you qualify for. The Internal Revenue Service will then make use of your Modified Adjusted Gross Income to see if you qualify for certain credits, and deductions, and to know if you’re eligible for any retirement plans. In the simplest terms, the MAGI or the Modified Adjusted Gross Income is your AGI plus some items added to it, such as excluded or exempt deductions and income. What is Modified Adjusted Gross Income on W2 So, in most cases, your AGI may be lower than your Gross Total Income on your return and it will never be more than that. Then, the Adjustments to Income are your student loan interest, educator expenses, retirement account contributions, or alimony payments. The Gross Income will include dividends, wages, business income, capital gains, retirement distributions, and other income. AGI or the Adjusted Gross Income is the gross income minus the adjustments to income.
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