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How to Determine My Modified Adjusted Gross Income

where is my adjusted gross income on my w2

Your modified adjusted gross income is an important figure on your Form 1040.

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Calculating your modified adjusted gross income is an important step in determining your total tax obligation. Numerous deductions and credits are related to the amount of your MAGI, and a higher MAGI may render you ineligible for certain tax benefits. For example, you may not be able to take a deduction for student loan interest if your MAGI is too high. You also lose the ability to deduct your contribution to an individual retirement account if your MAGI is above a certain level. MAGI calculations are straightforward, consisting primarily of your total income minus certain allowable deductions.

Step 1

Enter all

of your income on IRS Form 1040. Lines 7 through 21 of this form are where you report all of your income to the Internal Revenue Service, including tax-exempt income, salaries, wages, dividends, interest, alimony, capital gains, IRA distributions, rental and farm income, unemployment compensation, and Social Security benefits. Total your income on line 22.

Remove certain deductions from your AGI to calculate your MAGI. The IRS considers your MAGI to be your AGI minus eight deductions and exclusions. To compute your MAGI, subtract the deductions for student loan interest, IRA contributions, tuition and fees, domestic production activities, and foreign earned income. You'll also have to subtract the foreign housing exclusion, the exclusion of qualified savings bond interest and the exclusion of employer-provided adoption benefits. The result is your MAGI.

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