For purposes of determining the taxable portion (if any) of social security or Railroad Retirement benefits, modified AGI is the sum of AGI plus (1) tax-exempt or excluded interest, and (2) any amounts exempted or excluded for foreign earned income, foreign housing, American Samoan income, or Puerto Rican income.
Modified adjusted gross income. For purposes of computing a specific deduction or credit, MAGI begins with the taxpayer's regular adjusted gross income which is then modified to account for certain types of losses, exclusions, and deductions. For example, for child tax credit purposes, the MAGI is regular AGI plus any excluded foreign, U.S. possession, or Puerto Rican income.