GLOSSARY · HEALTH

Modified Adjusted Gross Income (MAGI)

Income measure used for ACA subsidies, Medicaid eligibility, and Medicare IRMAA.

Health 📋 Reviewed by InsureCo Editorial Team · Updated April 30, 2026
Quick definition: Income measure used for ACA subsidies, Medicaid eligibility, and Medicare IRMAA.

Full explanation

Modified Adjusted Gross Income (MAGI) is a slightly adjusted version of Adjusted Gross Income (AGI) used for various income-tested programs. For ACA subsidies, MAGI = AGI + non-taxable Social Security + tax-exempt interest + excluded foreign income. For Medicare IRMAA, MAGI = AGI + tax-exempt interest. For self-employed people, MAGI includes the circular interaction with the self-employed health insurance deduction (healthcare.gov handles the math). Lower MAGI generally means larger ACA subsidies, possible CSR access, and no IRMAA on Medicare.

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