Modified Adjusted Gross Income Calculator is an excel sheet which helps you calculate your MAGI very easily and accurately.
MAGI is calculated by adding back several deductions to your AGI – Adjusted Gross Income.
Usually, MAGI is useful for determining the eligibility of Roth IRA Contributions as well as other IRA deductions. Several tax credits are also subject to your MAGI amounts.
MAGI plays an important role for Traditional IRA and Roth IRA contributions. Your deduction can be reduced or eliminated if your MAGI score is higher.
Tip to lower your MAGI: Put more money into retirement plans through work as they aren’t added back to calculate your MAGI.
You are saving more for your future and also saving on your taxes.
Thus, knowing MAGI is very important for every taxpayer.
We have created a simple and easy to use Modified Adjusted Income Calculator in Excel.
Just enter your relevant details and it will automatically calculate your MAGI. This template can be helpful to individuals and tax consultants.
Click here to download Modified Adjusted Gross Income Calculator Excel Template.
You can download excel templates like Traditional IRA Calculator, Roth IRA Calculator and Income Statement Projection in Excel for easy calculations.
To know more about MAGI click on the link below:
MAGI – Modified Adjusted Gross Income
Let us discuss the contents of the template in detail.
Content of Modified Adjusted Gross Income Calculator
This template consists of two sheets one is the Adjusted Gross Income Calculator and other is the Modified Adjusted Gross Income Calculator.
The Modified Adjusted Calculator consists 2 sections:
- Header Section
- Data Input Section
- MAGI Calculations
1. Header Section
The header section consists of name logo and other relevant details. If you are a company, tax consultant/advisor you can add your company name and logo in the header section.
2. Data Input Section
The data input section consists of multiple items.
AGI: Adjusted Gross Income. AGI is your Gross Income less of Allowable Deductions.
Thus AGI = Gross Income – Allowable Deductions
You can find your AGI at the end of the first page of Form 1040 of Federal Tax Returns.
If you know your AGI, then you can directly add up the figure in the cell adjacent to AGI.
Don’t worry, if you haven’t calculated your AGI, just use the given Adjusted Gross Income Calculator to calculate it.
IRA Deductions: Enter the deduction claimed for a regular contribution to Traditional IRA.
Student Loan Interest Deductions: deductions claimed for student loan interest or qualified tuition.
Self Employment Tax: Taxpayers can add 50% of their self-employment tax.
Passive Incomes or Losses: If you have made any passive income or loses you can add them here.
Excluded Foreign Incomes: In AGI your foreign income is not reported. As it is your source of income you can include if you have any such income.
Rental Losses: If you have made any losses in your rental income then you can add these to your MAGI.
The interest of EE Savings Bond: Add the interest of EE savings bonds that are used for paying the higher education expenses.
Adoption Expenses: Adoption expenses paid by employers can be added here.
Losses from Partnerships: Report the losses from any publically traded partnership here in this cell.
Add the amount of the relevant cells that are applicable to you.
3. MAGI Calculations
The formula for deriving MAGI:
AGI + All the above-mentioned items in data input section.
Hence, The sum of all the above items is your MAGI – Modified Adjusted Gross Income.
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If you have any queries please share in the comment section below. I will be more than happy to assist you.
I’m trying to calculate my MAGI for 2018. My IRMAA letter from Medicare indicates that my AGI and MAGI as the same value. However, I had $27,869 in rental losses that reduced my AGI. According to you calculator, I need to add the losses to my AGI. Is Medicare wrong?
Also, I though you also need to add back the un-taxed portion of your Social Security benefits to the AGI. Is that not correct and why you don’t have those fields available in your calculator?
Rules for social security benefits:
Up to 50% of Social Security benefits are taxable for individuals with a combined income of at least $25,000, or a couple filing jointly with a combined income of at least $32,000.
Up to 85% of Social Security benefits are taxable for individuals with a combined income of at least $34,000, or a couple filing jointly with a combined income of at least $44,000.
Retirees who receive very little other income, either from retirement plan payouts or other earnings, probably won’t pay taxes on their Social Security benefits.
Thanks for notifying us. We will update the article accordingly.
Thank you for your reply. However, I had 2 questions. My first question was my IRMAA letter from medicare indicated that my AGI and MAGI were the same value. According to your calculator, I am required to add-back my rental losses to my AGI, which would have increased my MAGI. My question was, did Medicare make a mistake in their IRMAA letter?
The second question was about calculating the untaxed portion of my Social Security benefits and adding that to my AGI. I don’t see a field in your spreadsheet to accommodate that add-back.
Dear Randy, I said to you earlier that I have missed it. The file will be updated later on.
About the IRMAA letter, the mistake might have been either from their side or you might have not reported these losses.