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posted Jun 4, 2019 5:37:17 PM

Does a cash estate inheritance need to be added to the agi for the magi? Where do you report the MAGI?

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1 Best answer
Level 9
Jun 4, 2019 5:37:18 PM

No, an inheritance is not an addition to the MAGI for tax purposes.  Your MAGI is used as a basis for determining whether you qualify for certain tax deductions.  TurboTax will calculate your MAGI based on your entries.

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. According to the IRS, your MAGI is your AGI with the addition of the following deductions, if applicable:

  • Student loan interest
  • One-half of self-employment tax
  • Qualified tuition expenses
  • Tuition and fees deduction
  • Passive loss or passive income
  • IRA contributions, taxable social security payments
  • The exclusion for income from U.S. savings bonds
  • The exclusion under 137 for adoption expenses
  • Rental losses
  • Any overall loss from a publicly traded partnership


1 Replies
Level 9
Jun 4, 2019 5:37:18 PM

No, an inheritance is not an addition to the MAGI for tax purposes.  Your MAGI is used as a basis for determining whether you qualify for certain tax deductions.  TurboTax will calculate your MAGI based on your entries.

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. According to the IRS, your MAGI is your AGI with the addition of the following deductions, if applicable:

  • Student loan interest
  • One-half of self-employment tax
  • Qualified tuition expenses
  • Tuition and fees deduction
  • Passive loss or passive income
  • IRA contributions, taxable social security payments
  • The exclusion for income from U.S. savings bonds
  • The exclusion under 137 for adoption expenses
  • Rental losses
  • Any overall loss from a publicly traded partnership