MAGI (Modified Adjusted Gross Income)

Adjusted gross income from Form 1040 line 11 plus tax-exempt interest from line 2a. Used by Medicare to determine IRMAA. It includes wages, dividends, capital gains, IRA and pension distributions (taxable portion), taxable Social Security, business and rental income. It does not include Roth IRA distributions, qualified HSA withdrawals, the non-taxable portion of Social Security, life insurance proceeds, gifts, or inheritances. Several federal programs use the term MAGI, but each defines it slightly differently. The IRMAA-MAGI definition is the simplest: AGI plus tax-exempt interest.