modified adjusted gross income

Modified adjusted gross income (MAGI) is a measure used by the government to determine eligibility for certain tax benefits and programs. It starts with your adjusted gross income (AGI), which is your total income after deductions. Then, specific additions or modifications are made to that amount, such as tax-exempt interest or foreign income, depending on the program. Essentially, MAGI provides a clearer picture of your true income level, helping agencies decide if you qualify for things like premium subsidies, Medicaid, or student aid.