MAGI to avoid increase medicare premium

Hello I am trying to figure out how to calculate my MAGI. I understand that it is AGI plus added back deductions but the instructions seem very confusing. for instance, one part says IRA contributions are added back another part says no, also two different sites I've been too say employer sponsored 401k contributions are and are not added back. My concern is that if the MAGI rises above 205,000 our Medicare premiums increase significantly.

thank you

972

Expert Alumni

Mar 14, 2024 7:20:47 AM

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

You don't add back employer sponsored 401k contributions.

For more information, check: What Is the Difference Between AGI and MAGI on Your Taxes?

Level 15

Mar 14, 2024 2:49:14 PM

MayaD's reply does not provide a useful answer to the question.

MAGI for the purpose of Medicare IRMAA is AGI plus tax-exempt interest, Form 1040 line 11 plus line 2a.

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MAGI to avoid increase medicare premium