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Modified AGI for SSA

Forum|Forum|11 months ago
July 25, 2025
4 replies
13 views

Is the program calculating the AGI adjustments correctly to arrive at the MAGI for SSA taxable amount.

I have read that HSA contributions and SEP contributions are adjustments that are supposed to be added back to arrive at MAGI. I don't think my program is adding it back to the MAGI calculation.

ProSeries Professional

Best answer by TaxGuyBill

@tscott wrote:

I have read that HSA contributions and SEP contributions are adjustments that are supposed to be added back to arrive at MAGI.

Where did you read that?

Here is what the law says:

(2) Modified adjusted gross income

For purposes of this subsection, the term "modified adjusted gross income" means adjusted gross income—

(A)

determined without regard to this section and sections 85(c), 135, 137, 221, 911, 931, and 933, and

(B)

increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax.

https://www.law.cornell.edu/uscode/text/26/86

I'll save you some time; none of those code sections listed are for HSAs or SEPs.

sjrcpa

Level 15

Get the worksheet from the 1040 instructions and complete it as a double check.

The more I know the more I don’t know.

T

tscottAuthor

Level 5

I did, that worksheet deducts the HSA contribution and the SEP contribution for MAGI. From what I can tell it should not be deducting it.

BobKamman

Level 15

I have read that HSA contributions and SEP contributions are adjustments that are supposed to be added back to arrive at MAGI.

Artificial intelligence strikes again? I have read that people who don't cite their sources are predictably unreliable. Here's what AI tells me:

When it comes to calculating Modified Adjusted Gross Income (MAGI), the specific deductions you need to add back to your Adjusted Gross Income (AGI) can vary depending on the purpose of the MAGI calculation. This is because MAGI is used for different tax benefits and programs, and each has its own specific set of rules for which adjustments are included.

Important note: It's important to be aware that the specific formula for calculating MAGI can vary depending on the particular tax credit, deduction, or program you're evaluating. It's always best to consult with a tax professional or utilize reliable tax software to accurately calculate your MAGI for your specific circumstances and intended purpose.

IRonMaN

Level 15

That guy named Al isn't as bright as people make him out to be. He's kind of like the Wizard of Oz speaking but sometimes you just need to have Toto go behind the curtain to see that he isn't as impressive as his mage makes him out to be. It seems that our current society has lost the ability to actually think for themselves and AI is only going to make it worse in the coming years.

Slava Ukraini!

BobKamman

Level 15

AI is nothing but old wine in new bottles. More precisely, old data processed with faster chips. It's still all 1s and 0s. A few generations ago, 50-passenger airplanes needed a crew of 4. Today, 500-passenger planes need a crew of 2. Machines have replaced the navigator and engineer, but the machines still need to be designed and programmed by human intelligence. (Also, we need Elon to keep his satellites turned on.)

A real person in a real classroom needs to learn from a real teacher that MAGI has several different meanings, depending on context. Well, OK, the classroom can be a computer screen, and the teacher might have posted the lesson from somewhere else, a long time ago. But you get the idea.

abctax55

Level 15

Who would have thought the IRS would have a tool to help with the computation?

https://itap1.for.irs.gov/owda/1/investigate/SocialSecurityBenefits_ITA/en-US/ScreenOrder~Main~qs%2406d44e8f-7964-427e-8cd7-1f7a287e0305%24global%24global

HumanKind... Be Both

T

tscottAuthor

Level 5

What I am taking from these responses to my post is the program does not calculate the MAGI correctly and somewhere in the program I have to manually add back the HSA deduction and SEP deduction on the MAGI worksheet. Can someone tell me where that manual deduction is in the program?

abctax55

Level 15

Re-read everything; go to the IRS link provided.

Your "take-away" is incorrect.

HumanKind... Be Both

T

TaxGuyBillAnswer

Level 15

@tscott wrote:

I have read that HSA contributions and SEP contributions are adjustments that are supposed to be added back to arrive at MAGI.

Where did you read that?

Here is what the law says:

(2) Modified adjusted gross income

For purposes of this subsection, the term "modified adjusted gross income" means adjusted gross income—

(A)

determined without regard to this section and sections 85(c), 135, 137, 221, 911, 931, and 933, and

(B)

increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax.

https://www.law.cornell.edu/uscode/text/26/86

I'll save you some time; none of those code sections listed are for HSAs or SEPs.

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