How is Modified Adjusted Gross Income Calculated?

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By on December 8, 2017 in Pay & Benefits, Q&A with 0 Comments

Calculator lying next to a spreadsheet and a pen

Q. I understand that my Medicare Part B premiums can be higher than the base amount if my modified adjusted gross income is above a certain amount. How is modified adjusted gross income calculated?

A. To calculate your modified adjusted gross income (MAGI) take your adjusted gross income (AGI) and add back certain deductions. Depending on your deductions, it’s possible that your MAGI and your AGI could be the same. Here are the deductions you add back to your AGI in order to come up with your MAGI.

  • ½ of self-employment tax
  • Passive loss or passive income
  • The Section 137 deduction for adoption expenses
  • Student loan interest
  • IRA contributions
  • Rental losses
  • Qualified tuition expenses
  • Income exclusion from U. S. savings bonds
  • Taxable Social Security payments
  • Deductions for tuition and fees
  • Overall losses from a publicly traded partnership

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.

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About the Author

John Grobe is President of Federal Career Experts, a consulting firm that specializes in federal retirement and career transition issues. He is also affiliated with TSP Safety Net. John retired from federal service after 25 years of progressively more responsible human resources positions. He is the author of Understanding the Federal Retirement Systems and Career Transition: A Guide for Federal Employees, both published by the Federal Management Institute. Federal Career Experts provides pre-retirement seminars for a wide variety of federal agencies.