modified adjusted gross income (MAGI)


Calculation computed by the Internal Revenue Service to determine how much of a taxpayer's contributions to an IRA may be deducted from his/her taxable income. To calculate this figure, standard deductions are added back into adjustable gross income.

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The modified adjusted gross income was used primarily for tax purposes so we had to prepare the information prior to January.

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Thanks to my wife's raise, we were no longer able to contribute to our Roth IRA because our modified adjusted gross income rose above the government's accepted limit.

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Fred was happy to learn that the money he saved in tax deferred accounts didn't count towards his modified adjusted gross income, making him eligible for the Earned Income Tax Credit.

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Modified ACRS credit for qualified retirement savings contribution