topic Tax bracket & IRMAA increase advice in Get your taxes done using TurboTax

Tax bracket & IRMAA increase advice

SLYKTAX — Sun, 06 Apr 2025 18:36:55 GMT

Since Congress has approved the Windfall Elimination Program and backdated to Jan 2024, I am getting 2 years of extra income this year and that will get my IRMMA pass the standard $106K -$212K for 2027.

The next IRMAA level is $212K-$266K. My 2024 AGI is $198K which I believe is still under $212K MAGI.

For 2025, since I cannot get pass the standard IRMMA lower limit, I may as well do some, say, $50K Roth conversion to bring my MAGI under $266K. I am aware of higher tax bracket and need some advice what I need to look out so I will not get over the IRMAA $266K limit.

What are the other source of income that will have to add to my TAXABLE income to derive to my MAGI. Thanks

Re: Tax bracket & IRMAA increase advice

VictoriaD75 — Mon, 07 Apr 2025 22:49:02 GMT

How do you calculate MAGI?
To calculate your modified adjusted gross income, take your AGI and "add-back" certain deductions. Many of these deductions can be 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

IRS Instructions for Calculating MAGI

@SLYKTAX

Re: Tax bracket & IRMAA increase advice

SLYKTAX — Tue, 08 Apr 2025 03:23:24 GMT

Thanks Victoria,

Is the $3,000 Stock loss deduction need to be added back?

Did TurboTax calculate the MAGI in our tax return as I don't see it.

Thanks again.

Re: Tax bracket & IRMAA increase advice

RobertB4444 — Fri, 18 Apr 2025 21:59:45 GMT

The $3,000 stock loss does not need to be added back.

TurboTax will only calculate your MAGI if it is needed for a calculation on your tax return.

@SLYKTAX

Re: Tax bracket & IRMAA increase advice

SteamTrain — Sat, 19 Apr 2025 13:04:22 GMT

@SLYKTAX

One thing you do have to remember to add back to your AGI, to get your MAGI for IRMAA purposes, is any Tax-Exempt interest/dividends showing on your form 1040.

As an example...Looking at your 2024 form 1040, that would be line 2a plus line 11.

Re: Tax bracket & IRMAA increase advice

SLYKTAX — Sat, 19 Apr 2025 01:35:50 GMT

Thanks for pointing the line items.