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Level 1
posted Oct 30, 2024 10:12:54 AM

how to calculate or estimate MAGI?

My income is getting closer to the upper limit for Roth IRA. How do I estimate or calculate my MAGI before I get W2 in 2025 Feb?

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1 Replies
Employee Tax Expert
Oct 30, 2024 10:21:58 AM

Hi Swan76,

Thank you for your question today. Here' how to calculate MAGI:

 

To calculate your Modified Adjusted Gross Income (MAGI), follow these steps:

  1. Determine Your Gross Income: This includes all income sources such as wages, salaries, interest, dividends, rental income, etc.

  2. Calculate Your Adjusted Gross Income (AGI): Subtract any eligible deductions from your gross income. These deductions can include contributions to retirement accounts, student loan interest, alimony payments, and more.

  3. Add Back Certain Deductions: Add back specific deductions to your AGI to get your MAGI. These deductions often include IRA contributions, student loan interest, one-half of self-employment tax, and other specific deductions.

          Good luck to you!