Modified Adjusted Gross Income (MAGI)

Modified adjusted gross income, or MAGI, is a variation of adjusted gross income. There are different MAGIs computed for different purposes.

In the context of Planned Giving and our Planned Giving Manager software, MAGI determines whether a taxpayer is subject to the Net Investment Income Tax (Medicare Surtax). In this case, MAGI equals AGI plus any foreign earned income exclusion.

Taxpayers with a MAGI above the applicable threshold pay Medicare surtax on the lesser of (1) net investment income or (2) the amount by which MAGI exceeds the threshold.