Tax Law (Questions About Taxes)/MAGI

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Question
Ms. Powell
Medicare D may levy a surcharge on it's monthly premium if ones MAGI exceeds certain ammounts. I can see my AGI on my 1040, but where is (or how do I calculate) my MODIFIED AGI?
Thanks.
DBRJ

Answer
Dear Mr. Powell,

In order to calculate MAGI you have to add back most of non-taxable items excluded for calculation of AGI.

Such income items include but not limited to the following: tax-exempt interest, non-taxable portion of pension distribution, non-taxable portion of Social Security benefits, etc.

Modified Adjusted Gross income is widely used in many areas to determine eligibility for various programs and benefits.

This article http://www.taxesforexpats.com/expat-tax-advice/foreign-tax-credit.html explains the concept of MAGI calculation.

Hope this helps,

I.J.Zemelman, EA  

Tax Law (Questions About Taxes)

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IJ Zemelman, EA MBA

Expertise

I am an IRS-authorized EA and principal of a Tax Preparation firm focusing on U.S. Expatriates. We specialize in all tax issues faced by American citizens living abroad - such as foreign earned income, tax treaties, foreign spouse, etc. Visit our website - www.TaxesForExpats.com - for more information.

Experience

18 years professional tax experience, 12 with expatriate taxes.

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Expatriate tax information on www.TaxesForExpats.com

Education/Credentials
MBA from Zicklin School Of Business, IRS Enrolled Agent

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