Your Essential Guide to MAGI Components, Calculation, and Impact on Benefits
Understanding modified adjusted gross income (MAGI) is your golden key to navigating tax benefits and Medicare premium calculations.
Modified Adjusted Gross Income (MAGI) is a key figure that determines eligibility for various tax benefits and Medicare premium calculations. It starts with your AGI and adds back certain deductions.
For Medicare purposes, MAGI is simply your AGI plus tax-exempt interest income. This is the figure that determines whether you'll pay IRMAA surcharges.
Understanding what goes into your MAGI helps you manage it effectively:
Tweaking aspects of your financial portfolio can influence your MAGI in beneficial ways. Strategic planning is especially important for those approaching Medicare eligibility.
Learn about comprehensive strategies to reduce your MAGI, including Roth conversions, qualified charitable distributions, income timing, and tax-loss harvesting.
Our tools model how different income strategies affect MAGI and IRMAA costs.
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