I am using Turbotax Home and Biz 2024 for my return, I'd like to know EXACTLY how the Modified Adjusted Gross Income (MAGI) should be calculated so I can decide how much my traditional IRA contribution is deductible.
The MAGI is referenced in 2 of the TT worksheets - IRA Deduction Worksheet (line #12) and Roth IRA Contribution Limit Worksheet (line #1) - but TT does not explicitly show how it was calculated. Based on the various numbers on various TT forms, it seems TT calculates the MAGI as the AGI + IRA deduction, but don't I need to know the MAGI first before the IRA deduction can be determined?
On form 1040, the adjusted gross income (AGI) is the difference between total income and Schedule 1 income adjustments, which requires IRA deduction (line #20) as well, which again depends on knowing MAGI first, which means, without MAGI, I should not be able to calculate the IRA deduction and, therefore, AGI.
Based on this IRS site, https://www.irs.gov/e-file-providers/definition-of-adju[product key removed]e#calculatemagi:
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MAGI for traditional IRA deductions
Take your AGI and add:
- Student loan interest deduction
- Excludable savings bond interest
- Employer-provided adoption benefits excluded from income
- Foreign earned income or housing excluded from income
- Foreign housing deduction
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it seems TT's way of calculating MAGI for traditional IRA is wrong - if I do not have the 5 items listed, my MAGI should be the same as the AGI, am I wrong?
I have spent hours trying to wrap my head around this but I am totally lost.
Any help will be greatly appreciated.
Jun
