Modified Adjusted Gross Income Explained - Easy To Understand!

[@OnCashFlow]

You Need To Check Out My Complete Guide To Slashing Your Income Taxes! kzbin.info/www/bejne/jZ2kk3SdZZx_fpo

[@iHealthBrokers]

Great video, Zach! So many people end up leaving money on the table when applying for health insurance because they don't understand MAGI. Really good explanation!

[@OnCashFlow]

Thank you! I really want to do a MAGI video specifically for calculating income for Healthcare.gov insurance, what do you think?

[@iHealthBrokers]

@@OnCashFlow Great minds think alike! We're working on a similar video. Can't wait to see what you put out there!

[@OnCashFlow]

@@iHealthBrokers Awesome! it's so important to know! especially with the extended enrollment period opening up!

[@ChristopherWalkenPUA]

Thumbs down, you never explained what the things are "that we add back to from AGI to get MAGI."

[@OnCashFlow]

I'm sorry if I didn't explain that, I hope that I mentioned in the video that it depends because there is no 1 definition of what MAGI is. MAGI adds back certain adjustments depending on what/who is asking you to calculate it.

[@mikefeir]

Wow glad I found this channel. Your explanations are easy to follow

[@OnCashFlow]

Thank you so much, I'm so glad you found the channel too!

[@brendan5850]

MAGI is also used in calculating social security benefits. Good review for my Tax midterm this week!

[@OnCashFlow]

Great input Brendan! I seem to never really include social security in any of my videos. Good luck on your midterm!

[@shanarobinson7672]

Best explanation of all time

[@OnCashFlow]

Thank you very much! So glad it was helpful!

[@channel6a]

On 8.02 of your video do you have a link of that form. That is what I am looking for to calculate MAGI for Roth IRA.

[@OnCashFlow]

www.irs.gov/publications/p590 Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes Hope this helps! :)

[@realman1349]

Question for clarification... when stated “add back passive income losses”, does that mean you can’t deduct passive rental income loss that was passively managed in order to get your MAGI? Example: If I earned $100K, but took a $20K loss on rental property, would I be able to deduct the $20K to get a MAGI of $80K? From what I’m interpreting, the answer seems to be no... that the MAGI would still be $100K. Thanks in advance for any feedback.

[@OnCashFlow]

I'm certainly not a tax expert, so please don't take this as definitive advice, but I believe that in your scenario if you have 100k in income and 20k in losses on rental property then your AGI would be 80k. However, with MAGI you would add back those rental losses and therefore your MAGI would be 100k. I hope this helps!

[@realman1349]

@@OnCashFlow Thanks for the response.

[@DefiantTacos]

Hey just got approved by MAGI in the mail just figuring out what it is Subbed!

[@OnCashFlow]

Glad I could help!

[@demondsam3958]

Awesome content🔥👍🏾

[@OnCashFlow]

Thank you! I'm glad you found it useful! :)

[@troyhuggins9761]

Just to confirm rental passive income doesn’t need to be added back in. It shows as a loss with mortgage interest and depreciation but not sure if I have to claim just the rent received for the MAGI?

[@OnCashFlow]

I don't think so, I've never heard of any kind of MAGI doing that.

[@lanazaakat9466]

I maxed out on my 403 b and 457 for 2022. I want to be able to contribute the full 7500/- to the Roth IRA in 2023 (over 50). Do the 403 b and the 457 contibutions made in 2022 need to be added back to AGI to get my MAGI ? If the answer is "yes" then what is the point of contributing pretax deferrals stated above. Every website seems to have a different answer. I read somewhere that foreign income, student loan interest need to added back to get MAGI. But some places say trad IRA contibutions also need to be added back to AGI to get MAGI. Please clarify. Thx

[@OnCashFlow]

MAGI differs depending because there are different things added back depending on what you are calculating it for. www.irs.gov/publications/p590a#en_US_2021_publink1000230989 Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes The point of contributing pretax is to save on taxes in the year you contribute.

[@saynomor2900]

Can the MAGI make me eligible for the stimulus payment if I was over by $1000?

[@OnCashFlow]

I believe that the stimulus is based on AGI not MAGI? in either case, usually MAGI adds back certain income, so AGI is better in this case.

[@MrPuciek]

Can I subtract my 401k from MAGI?

[@OnCashFlow]

Generally speaking, Traditional 401k contributions reduce your MAGI, but Roth 401k contributions do not.

[@straitjacketstudios]

What worksheet are you referring to at 7:47? You are speaking really fast and cannot make it out. Sorry.

[@OnCashFlow]

I'm sorry about that. The worksheet is 2-1 in IRS Pub 590-A Here's a link www.irs.gov/publications/p590a#en_US_2020_publink100025085 Sorry for the inconvenience I think I have gotten a lot better at making videos since then (hopefully!)

[@straitjacketstudios]

@@OnCashFlow Thanks. No problem. I was able to Google around and find the 590-A. Keep the vids coming!!

[@OnCashFlow]

@@straitjacketstudios Awesome! thank you so much!

[@jayray9824]

Based on the title I was expecting this video how to calculate MAGI

[@OnCashFlow]

There is no one way to calculate MAGI. It depends on what you are calculating it for. There is no one definition of MAGI like there is for AGI.

[@rogerfurr4325]

Clear as mud

[@OnCashFlow]

Sorry again, Please help me understand how I can explain things better next time.

[@junkequation]

You said nothing. I still have no idea how to tell what my magi is

[@OnCashFlow]

I'm sorry. The reason is that there is no such thing as one definition of MAGI. You need to take your AGI and make adjustments depending on what is asking you to make certain adjustments.

[@rogerfurr4325]

Never get that 9 minutes of my life back

[@OnCashFlow]

I'm very sorry I didn't explain it well enough for you. Can you please help me understand where I went wrong so that I can try to improve?

[@TheOne-vf2yw]

I understood it very well 🤷‍♂️

[@OnCashFlow]

@@TheOne-vf2yw Thank you!

[@phillyboylaboy]

Clear as mud 😂

[@OnCashFlow]

Uh oh...sorry. I know this stuff is difficult to understand (and I believe that is by design).

[@KJG-3647]

Please speak more slowly and leave images up a bit longer. That was waaaay too speedy.

[@OnCashFlow]

Sorry! I was nervous!

[@snort455]

😂please slow down. show the work sheet number.

[@OnCashFlow]

Sorry! I always thought that I talked slow, so maybe I did the opposite by accident!

[@lanazaakat9466]

You are in a rush to catch the last train ? You spoke a lot, but said nothing.

[@OnCashFlow]

Sorry, I was leaving on that midnight train to Georgia...just kidding. I'm sorry that you didn't find value in this video. I have improved a lot since posting this video 2 years ago. Would you mind watching a more recent video of mine and giving me a second chance? Thank you.

[@lanazaakat9466]

@@OnCashFlow Thank you.

[@OnCashFlow]

@@lanazaakat9466 I appreciate you taking the time to comment and help me improve.

[@dozey1242]

"Uhh"

[@OnCashFlow]

Haha I think I have gotten better at not doing that with more experience making videos!