Please DO NOT direct me to ANY of Turbo Tax information, because it is either incorrect or ridiculously circular. The IRS calculates MAGI differently for different purposes (e.g., Trad IRA contribution compared with ACA APTC subsidies). I'm looking for how the MAGI is calculated to find out how much of a Trad IRA contribution is deductible for self-employed individuals if you also have a SEP-IRA (which is considered an employer "workplace" plan even if sole prop). The deduction is phased out if the MAGI is > $83,000. Turbo Tax gives infuriatingly useless information such as:
"MAGI is AGI with certain deductions added back such as IRA and self-employed retirement plan contributions" which is ONLY true for other MAGIs. In an answer about this exact topic, TT also states that SE individuals can increase their Trad IRA deductions by reducing the MAGI by reducing the AGI by CONTRIBTING to IRAs...WTF TT?
Question: How is the MAGI (for IRA deduction limits, Not ANY OTHER purpose) calculated for SE individuals who also contribute to a SEP-IRA? What is added back to the AGI? Half of the SE tax AND the SEP-IRA contribution or JUST 50% of the SE tax?
Thank you for bearing with me...and please, no cut and paste from other TT answers — they are all referring to the wrong type of MAGI. Thanks in advance.
