No, modified adjusted gross income is not always higher than adjusted gross income, though it usually is. For most tax provisions, MAGI starts with your AGI and adds certain deductions or excluded income back in, so the modified figure comes out equal to or higher than the original. The exception runs the other direction: when you calculate MAGI to see whether you can contribute to a Roth IRA, income from Roth conversions and retirement-plan rollovers is subtracted, which can push MAGI below AGI. And for a large share of filers, the two numbers are simply the same.
Why MAGI Is Usually Higher Than AGI
AGI is the figure on line 11 of Form 1040. It is your total gross income minus a specific list of above-the-line deductions such as health savings account contributions, up to $250 in educator expenses, and interest on qualified student loans.1Office of the Law Revision Counsel. 26 USC 62 – Adjusted Gross Income Defined
MAGI takes that number and layers on add-backs.2Internal Revenue Service. Modified Adjusted Gross Income Depending on which tax provision you are calculating, the items added back can include:
- Foreign earned income and housing exclusions claimed under Section 9113Office of the Law Revision Counsel. 26 USC 911 – Citizens or Residents of the United States Living Abroad
- The student loan interest deduction (up to $2,500)4Office of the Law Revision Counsel. 26 USC 221 – Interest on Education Loans
- Employer-provided adoption benefits excluded from income
- Tax-exempt interest from municipal bonds and similar sources
- The nontaxable portion of Social Security benefits
- The traditional IRA deduction itself, plus the education savings bond exclusion
Because each of these adjustments increases the total, MAGI ends up equal to or higher than AGI in nearly every situation.
The One Case Where MAGI Can Be Lower Than AGI
Roth IRA contribution eligibility is the exception. When you calculate MAGI to see whether you can put money in a Roth, you start with AGI, apply the usual add-backs, and then subtract income from converting a traditional IRA to a Roth and from rolling an employer plan into a Roth.2Internal Revenue Service. Modified Adjusted Gross Income
That subtraction matters when the conversion is large. A retiree who converts a substantial traditional IRA balance to a Roth in a given year will have an inflated AGI that reflects the conversion income. For Roth contribution purposes, though, the conversion amount comes back out, so the Roth IRA MAGI can be meaningfully lower than the AGI on the same return. No other common MAGI calculation works this way.
When AGI and MAGI Are the Same
Many filers find their AGI and MAGI are identical, which is the third possibility hidden inside the “higher or lower” question. If you claim none of the deductions or exclusions that get added back, there is nothing to add. A W-2 employee with a domestic salary, no student loan interest deduction, no foreign income, no employer adoption benefits, and no tax-exempt bond interest has the same number for both. For a large portion of taxpayers, AGI and MAGI can be used interchangeably without changing any outcome.
MAGI Is Not One Number
The comparison between AGI and MAGI gets more complicated because there is no single MAGI. Each tax provision that uses the term defines it with its own list of add-backs, so the same taxpayer can carry several different MAGIs on the same return.
Traditional and Roth IRAs
For IRA purposes, MAGI starts with AGI and adds back the student loan interest deduction, the IRA deduction itself, the education savings bond exclusion, employer adoption benefits, and foreign earned income or housing exclusions. Passive activity losses under Section 469 are also factored in.5Office of the Law Revision Counsel. 26 USC 219 – Retirement Savings For Roth contribution eligibility only, conversion and rollover income is then subtracted.
Premium Tax Credit
For the ACA Premium Tax Credit, MAGI equals AGI plus foreign earned income, tax-exempt interest, and the nontaxable portion of Social Security benefits.6Office of the Law Revision Counsel. 26 USC 36B – Refundable Credit for Coverage Under a Qualified Health Plan The student loan interest and IRA deductions are not added back here.
Medicare Premium Surcharges (IRMAA)
For the Income-Related Monthly Adjustment Amount on Medicare Part B and Part D premiums, MAGI is simply AGI plus tax-exempt interest.7CMS. 2026 Medicare Parts A and B Premiums and Deductibles It is the shortest of the three formulas.
Net Investment Income Tax
For the 3.8 percent surtax on net investment income, MAGI is AGI increased by the net foreign earned income exclusion.8Office of the Law Revision Counsel. 26 USC 1411 – Imposition of Tax
Because the formulas differ, a retiree with significant tax-exempt bond interest might have an IRA MAGI equal to their AGI but a Medicare MAGI several thousand dollars higher. When you check whether MAGI is higher than AGI in your case, you have to check against the specific version of MAGI that applies to the benefit or tax you are figuring.
Why the Gap Between AGI and MAGI Matters
The reason the comparison is worth working out is that MAGI is the number that determines whether you cross the threshold for several important tax rules. Crossing by even a small margin can eliminate a deduction, phase out a credit, or trigger a surtax. The retirement account limits, ACA credit eligibility, the net investment income tax, IRMAA surcharges, and the taxation of Social Security benefits all key off MAGI figures rather than AGI.9Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits
Two miscalculations show up often. If you contribute to a Roth IRA and your MAGI turns out to exceed the limit, the IRS treats the deposit as an excess contribution and applies a 6 percent excise tax for each year the money remains in the account.10Internal Revenue Service. Retirement Topics – IRA Contribution Limits You can avoid the penalty by withdrawing the excess plus its earnings by the tax return due date, including extensions.
And on the ACA side, if you underestimate your MAGI when signing up for marketplace coverage, you receive larger advance premium credits than you were entitled to. Beginning with tax year 2026, there is no cap on how much you must repay.11Internal Revenue Service. Updates to Questions and Answers About the Premium Tax Credit A household whose income ends up above 400 percent of the federal poverty level could owe back a full year of advance credits in one lump sum.
So the short answer stays useful as long as you attach the caveats: MAGI is higher than AGI most of the time, equal to AGI often, and lower than AGI only when you are calculating Roth IRA eligibility in a year with conversion or rollover income. Which version of MAGI you are working with decides which of those outcomes applies to you.