Modified Adjusted Gross Income (MAGI)

The figure used to determine eligibility for premium tax credits and other savings for Marketplace health insurance plans and for Medicaid and the Children’s Health Insurance Program (CHIP). MAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest.

• For many people, MAGI is identical or very close to adjusted gross income.
• MAGI doesn’t include Supplemental Security Income (SSI).
• MAGI does not appear as a line on your tax return.

Adjusted Gross Income (AGI)

Your total (or “gross”) income for the tax year, minus certain adjustments you’re allowed to take. Adjustments include deductions for conventional IRA contributions, student loan interest, and more. Adjusted gross income appears on IRS Form 1040, line 11.

To report expected income on your Marketplace health insurance application, you can start with your most recent year’s adjusted gross income and update it based on income and household changes you expect for the coverage year.

The Marketplace uses a different figure, called modified adjusted gross income (MAGI), to determine eligibility for savings. MAGI is not a line on your tax return.