Question

Why is the Modified Adjusted Gross Income calculated by TurboTax different from the amount used in the maximum Roth IRA contribution worksheet?

Forum|Forum|4 years ago
February 26, 2022
1 reply
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TurboTax Premier Online

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yankoAuthor

More details: my MAGI, calculated by TT on the MAGI worksheet is $129,292. However, the MAGI used in the IRA contribution worksheet is $121,517, which is my AGI, not MAGI. Since after $125k the contribution limit should start decreasing, mine should be less than the maximum. TT did not flag that as a problem. I'm filing as single.

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DanaB27

Please be aware, that the Modified Adjusted Gross Income for Roth IRA Purposes is differently calculated than the regular MAGI.

The Modified Adjusted Gross Income for Roth IRA Purposes deducts any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA (included on Form 1040, 1040-SR, or 1040-NR, line 4b) and a rollover from a qualified retirement plan to a Roth IRA (IRS).

Please see What Is the Difference Between AGI and MAGI on Your Taxes? for additional information.

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yankoAuthor

Thanks for the response, but none of the deductions that you listed apply in my case. The difference between AGI and MAGI in my case is because of rental loss.