One more note, @smithbg1 - sometimes, MAGI does include the non-taxable portion of social security benefits, such as when calculating the Premium Tax Credit. For purposes of the Senior Tax Deduction, I can confirm that the non-taxable portion is thankfully excluded, per the bill section below:
“(iii) Limitation based on modified adjusted gross income.—“(I) In general.—In the case of any taxpayer for any taxable year, the $6,000 amount in clause (i) shall be reduced (but not below zero) by 6 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).“(II) Modified adjusted gross income.—For purposes of this clause, the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933."
Sections 911, 931 and 933 deal with the following, respectively:
- citizens or residents of the United States living abroad;
- income from sources withing Guam, American Samoa, or the Northern Mariana Islands; and
- income from sources within Puerto Rico.
Just wanted to make sure I clarified my answer to indicate that sometimes the MAGI calculation depends on what it is being calculated for. Thanks!
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