How is Modified Adjusted Gross Income Calculated?

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

FedSmith.com author John GrobeBy Categories Pay & Benefits, Q&A Leave a comment

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

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About the Author

John Grobe is President of Federal Career Experts, a firm that provides pre-retirement training and seminars to a wide variety of federal agencies. FCE’s instructors are all retired federal retirement specialists who educate class participants on the ins and outs of federal retirement and benefits; there is never an attempt to influence participants to invest a certain way, or to purchase any financial products. John and FCE specialize in retirement for special category employees, such as law enforcement officers.

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