2501. What is Modified Adjusted Gross Income (MAGI)?
Modified Adjusted Gross Income is the sum of:
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The beneficiary's adjusted gross income (AGI) (last line of page 1 of the IRS Form 1040 (U.S. Individual Income Tax Return)), plus
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Tax-exempt interest income (line 8b of IRS Form 1040)
2501.1 How is MAGI used?
MAGI is used to determine if an Income-Related Monthly Adjustment Amount (IRMAA) applies. It is provided by IRS and is generally information that is two years prior (but not more than 3 years prior) to the year for which the premium is being determined. We will use the appropriate sliding scale table (§2503) to determine the IRMAA.
Last Revised: Feb. 1, 2008