How do I find the MAGI for a child's unearned income? I have completed her income form and ready to submit it to the IRS. I have to have her MAGI amount to enter on my son's tax return for his insurance credit. The popup says "Your dependent child's MAGI can be calculated by adding any amount reported on Form 1040 lines 2a to the amount on line 8b". How do you do find the MAGI when there is nothing on line 2a and no line 8b on her form 1040. Many thanks for any assistance.
Yes, you are correct. Line 37 of Form 1040 is the amount owed.
Typically, your MAGI (modified adjusted gross income) and AGI (adjusted gross income) are close in value to one another. Your daughter's adjusted gross income is shown on Line 11 of Form 1040.
To calculate her modified adjusted gross income, take her AGI and "add-back" certain deductions. Many of these deductions are rare, so it's possible her AGI and MAGI are identical.
Different credit and deductions can have differing add-backs for the 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
If you daughter has none of the above, then her MAGI is her AGI, which is listed on Line 11 of her Form 1040.
For more information, please see What is the Difference Between AGI and MAGI on your Taxes?