One issue that I have never seen on any web site explaining MAGI is that there are several ways to calculate it, and the method is specific to the purpose for which it is intended. In the IRS literature, they always say "MAGI for the purpose of...…," and such purposes are often eligibility for IRA or Roth contributions, eligibility for education tax credits, eligibility for marketplace health plans. I believe they are all slightly different, intended to avoid problems in providing the particular benefit for which they are designed. The largest difference I have seen is for Roth IRA eligibility. If you do a Roth conversion, the withdrawal from the IRA is added to your AGI, but specifically subtracted back out in the calculation of MAGI "for the purposes of determining Roth contribution eligibility." So if you convert $30,000 of IRA to Roth, your AGI is now 30,000 more, reflecting the income on which you will have to pay tax, but if you want to contribute new money to a Roth, subtract out that 30,000 from your AGI (in addition to other rules) and what may have been an AGI too high to contribute to a Roth might now be below the threshold.

Best video I’ve seen. Thank you

Such an important number/value which is left up to the user to calculate. Should be a part of figuring out & filing a tax return.

Thank you for this video!