To calculate your Modified Adjusted Gross Income (MAGI) for determining Roth IRA contribution eligibility, you start with your Adjusted Gross Income (AGI) and then make specific adjustments. For Roth IRA purposes, you generally add back certain deductions and exclusions to your AGI, such as: 1. Any deductions you took for student loan interest. 2. Tuition and fees deduction. 3. Foreign earned income exclusion. 4. Foreign housing exclusion or deduction. 5. Excluded savings bond interest. 6. Excluded employer adoption benefits. 7. Deductible contributions to a traditional IRA. 8. Rental real estate losses if you actively participate in the rental activity. Rental real estate and royalty income or loss are already included in your AGI, so you don't need to add them separately to calculate your MAGI. Instead, focus on the specific adjustments listed above. If you're unsure about any specific adjustments, it might be helpful to review IRS guidelines or use tax software to ensure accuracy.
