Neither Form W-2 income nor retirement income is excluded in the Form 8960, Line 13 MAGI computation. Line 13 only adds amounts to Adjusted Gross Income.
The computation of line 13 only adds amounts to Adjusted Gross Income:
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The Foreign Earned Income Exclusion from line 42 of Form 2555
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The deductions reported on line 44 of Form 2555 allocable to a Foreign Earned Income Exclusion and
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Adjustments for certain controlled foreign corporations and certain passive foreign investment companies
Please see Line 13—Modified Adjusted Gross Income (MAGI) in the 2021 Instructions for Form 8960 for more information.