What's the Difference Between AGI and MAGI?

AGI stands for adjusted gross income and MAGI stands for modified adjusted gross income — they're related numbers on your tax return but calculated slightly differently. Your AGI is your total income minus certain above-the-line deductions, like student loan interest, alimony paid before 2019, and contributions to a traditional IRA. Your MAGI starts with your AGI and then adds back some of those deductions, depending on what it's being calculated for. The IRS uses MAGI to determine eligibility for several key benefits, including Roth IRA contributions, the premium tax credit for health insurance, and certain education credits. The specific calculation for MAGI varies by benefit, so it's worth checking the rules for the particular credit or deduction you're trying to qualify for.