Tax bracket & IRMAA increase advice

[SLYKTAX]

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

[VictoriaD75]

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 

[SLYKTAX]

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.

[RobertB4444]

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 

[SteamTrain]

@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.

[SLYKTAX]

Thanks for pointing the line items.