Your Modified Adjusted Gross Income (MAGI) is used to determine how much, if any amount, you are able to contribute to a Roth IRA.
The calculation for your MAGI begins with your Adjusted Gross Income (AGI). From there, some modifications are made to your MAGI. Below are the most common modifications. For a step-by-step guide to calculating your MAGI, use Publication 590-A, Worksheet 2-1.
Start with Your AGI: Find your Adjusted Gross Income (AGI). This can be found on IRS Form 1040, Page 2, Line 38.
Subtract Roth Conversions: Subtract any Roth IRA conversions you did during the tax year. These are counted in your AGI, but do not count towards your MAGI, so they must be removed.
Add Back Common Deductions: Some deductions do not count for your MAGI. If you took these, you must add them back. The most common examples are: Traditional IRA contributions, student loan interest, and tuition.
The result is your MAGI.