Modified Adjusted Gross Income Calculator
Enter gross income, deductions and add-backs to compute AGI and MAGI. MAGI adds back tax-exempt interest and foreign income to AGI for assessing benefit or tax-relief eligibility.
Input Data
Results
At a glance:MAGI (Modified Adjusted Gross Income) starts from AGI and adds back certain items such as tax-exempt interest and foreign income. AGI = gross income − deductions; MAGI = AGI + add-backs. MAGI is typically the figure used to test eligibility for tax reliefs and benefits.
Formula
AGI = gross income − deductions.
MAGI = AGI + add-backs.
Total deductions and total add-backs are the sums entered.
$$\text{AGI} = \max(0,\ \text{Gross} - \textstyle\sum D)$$$$\text{MAGI} = \text{AGI} + \textstyle\sum A$$How to Use
- Enter your gross income for the year.
- Enter total pre-AGI deductions and total add-backs.
- Read the AGI and MAGI results with their breakdowns.
FAQ
What is the difference between MAGI and AGI?
AGI is your gross income minus deductible items, used as the basis for tax computation. MAGI takes AGI and adds back items such as tax-exempt interest and foreign income, and is used to assess eligibility for benefits or tax reliefs. MAGI is usually equal to or higher than AGI.
Which items are added back to compute MAGI?
Common add-backs include tax-exempt interest, income earned abroad that was not counted, and certain previously deducted retirement or education contributions. The exact list depends on the relief or benefit being assessed, and different schemes may have different add-back lists.
Do I need to compute MAGI for Hong Kong tax filing?
Hong Kong salaries tax has no formal MAGI concept; tax is charged on 'net assessable income'. However, when applying for public housing, school fee assistance or various allowances, the authorities may 'restore' deducted contributions or tax-exempt income to assess eligibility — conceptually similar to MAGI. This tool helps you understand and estimate that.
Why can't deductions make AGI negative?
Pre-AGI deductions can only reduce assessable income to zero and never create 'negative income'. This calculator therefore caps deductions at gross income, with AGI floored at 0, consistent with general tax and eligibility assessment practice.
Is a higher MAGI better or worse?
It depends. MAGI is an eligibility threshold: if a relief phases out as MAGI rises, a lower MAGI is more favourable; if a deduction or contribution cap is linked to MAGI, the rule varies. The key is to understand how the scheme you are applying for uses MAGI.
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References
This calculator's content is reviewed by our Licensed Tax Advisory team. Results are for reference only; please refer to the relevant authorities for the official figures.