For purposes of computing the adoption credit, modified adjusted gross income is regular AGI plus: (1) any foreign earned income exclusion, (2) any foreign housing exclusion or deduction, and (3) any exclusion of income from U.S. possessions and Puerto Rico.
For purposes of computing the child tax credit, modified adjusted gross income is regular AGI minus any excluded foreign, U.S. possession, or Puerto Rican income.
For purposes of computing the earned income credit for most taxpayers, modified AGI is regular AGI without regard to any excess of capital losses over capital gains; net loss from estates and trusts; net loss from nonbusiness rents and royalties; and 75 percent of any net loss from businesses computed separately with respect to (1) nonfarm businesses conducted as a sole proprietor, (2) farm businesses conducted as a sole proprietor, and (3) other trades or businesses (not including income as an employee).
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.