I understand that with my AGI calculated on Turbotax that it removes any deductions to come to a finalized number that I then have to add back to get my MAGI to determine whether or not I am allowed to contribute to my Roth IRA.
What I am finding on the IRS website and Turbox is that the calculation is defined as:
MAGI calculation
To calculate your modified adjusted gross income, take your AGI and "add-back" certain deductions. Many of these deductions are rare, so it's possible your AGI and MAGI can be identical. Different credit and deductions can have differing add-backs for your MAGI calculation. According to the IRS, your MAGI is your AGI with the addition of the appropriate deductions, potentially including:
- Student Loan Interest
- One-half of self-employment tax
- Qualified tuition expenses
- Tuition and fees deduction
- Passive loss or passive income
- IRA contributions
- Non-taxable social security payments
- The exclusion for income from U.S. savings bonds
- Foreign earned income exclusion
- Foreign housing exclusion or deduction
- The exclusion under 137 for adoption expenses
- Rental Losses
- Any overall loss from a publicly traded partnership
In this case, it states any IRA contributions are added to the AGI. I just want to verify that it doesn't include your Roth IRA contributions as there was no deduction taken for it and if you were to add it do your AGI you would be double counting the $6,000 contribution that would already be coming from after tax dollars from your income in 2020. I assume the language is referring to a traditional IRA that decreases your AGI for the year. Could someone help confirm my understanding is correct?
