2026 AGI/MAGI Summary Guide
2026 AGI/MAGI Summary Guide
Your Adjusted Gross Income (AGI) and Modified Adjusted Gross Income (MAGI) are two of the most consequential numbers on your tax return. They determine your eligibility for deductions, credits, retirement account contributions, Medicare surcharges, and more. This 2026 summary guide gives you a clear, visual reference for how each is calculated and where they matter.
What Is AGI and Why Does It Matter?
AGI is your gross income minus specific “above-the-line” deductions. It’s calculated before you take the standard or itemized deduction. Your AGI directly affects:
- Eligibility for many deductions and credits
- Whether you owe the 3.8% Net Investment Income Tax
- The deductibility of IRA contributions
- IRMAA surcharges on Medicare Part B and Part D premiums
Income Included in AGI
The following income types are included when calculating your AGI:
- Wages and other earned income
- Self-employment income
- Rental income, K-1 pass-through income
- Retirement account withdrawals
- Pensions and annuities
- Social Security benefits (up to 85%)
- Capital gains, dividends, and interest
- Taxable alimony (pre-2019 divorce agreements)
- Other Schedule 1 income items
Deductions That Reduce AGI
These above-the-line deductions reduce your gross income to arrive at AGI:
- Deductible IRA contributions
- HSA contributions made outside of payroll
- Deductible self-employment taxes (50%)
- Self-employed retirement plan contributions
- Self-employed health insurance deductions
- Student loan interest deductions
- Certain business expenses
- Alimony paid (pre-2019 divorce agreements)
What Gets Added Back for MAGI?
MAGI starts with AGI and adds back certain deductions or exclusions depending on the benefit being tested. Common MAGI add-backs include:
- Tax-exempt interest
- 50% of Social Security benefits
- Non-taxable portion of Social Security benefits
- IRA deduction
- Student loan interest deduction
- Excluded foreign income or housing
- Exclusion of adoption expenses
- Excluded U.S. Savings Bond interest
Key Benefits Subject to MAGI Phaseouts
Your MAGI determines whether you qualify—and at what level—for these important benefits:
- Roth IRA contributions — phaseout begins at $153,000 (single) / $242,000 (MFJ)
- Deductible IRA contributions — if covered by a workplace plan
- Provisional income for Social Security taxation
- IRMAA Medicare surcharges
- Age 65 senior deduction ($6,000 per eligible individual, phases out at $75,000 single / $150,000 MFJ)
- SALT deduction cap
- Tips and overtime deductions
- PMI deduction
- Auto loan interest deduction
- 3.8% Net Investment Income Tax
- Premium Tax Credit
- Child Tax Credit, AOTC, Lifetime Learning Credit
- Child and Dependent Care Credit
- Series EE and I Bond interest exclusion
- Adoption Tax Credit
Download the Full 2026 AGI/MAGI Summary Guide
Get the complete visual reference guide, including side-by-side comparison tables showing exactly which MAGI add-backs apply to each phaseout calculation. Use it alongside your financial plan to better understand where your income falls and which strategies can help manage your AGI.