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.
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.
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.
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.
Who would have thought the IRS would have a tool to help with the computation?
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.
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?
@tim05 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—
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