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Glossary

Modified adjusted gross income (MAGI)

Your income after certain adjustments, used to check if you qualify for benefits and tax credits.

Modified adjusted gross income (MAGI) is the number that benefit and tax credit programs use to decide if you qualify. It starts with your adjusted gross income from your tax return, then adds back some income that the IRS lets you subtract—like contributions to a traditional IRA or student loan interest.

Different programs calculate MAGI slightly differently. For example, Medicaid and CHIP may add back excluded foreign income that other programs don't. This means your MAGI may be different depending on which benefit you are applying for.

When you apply for a benefit or tax credit, the agency will calculate your MAGI based on that program's rules. You do not need to figure it out yourself—just report your income honestly. Applying is free, and only the agency decides if you qualify.

Programs where this matters

Child Tax CreditInternal Revenue ServiceThe Child Tax Credit is a federal tax credit that may lower the tax you owe if you are raising qualifying children.EITCInternal Revenue ServiceThe EITC is a federal tax credit for people who work and have low to moderate income. It may lower your tax and add to your refund.LIHEAPHHS Administration for Children and FamiliesLIHEAP helps households with low income pay heating and cooling bills, and may help in an energy crisis such as a shut-off notice.LifelineFCC / Universal Service Administrative CompanyLifeline is a federal program that may give households with low income a discount on phone or internet service.MedicaidCenters for Medicare & Medicaid ServicesMedicaid is free or low-cost health coverage run by each state with federal funding, for children, adults, pregnant people, older adults and people with disabilities.SNAPUSDA Food and Nutrition ServiceSNAP gives monthly benefits on an EBT card to help households with low income buy food.WICUSDA Food and Nutrition ServiceWIC gives healthy foods, nutrition education and breastfeeding support to pregnant women, new mothers, infants and young children with low income.ACA SubsidiesCenters for Medicare & Medicaid ServicesPremium tax credits may lower the monthly cost of a health plan you buy through the ACA Marketplace.CHIPCenters for Medicare & Medicaid ServicesCHIP gives low-cost health coverage to uninsured children in families that earn too much for Medicaid.Child Care AidHHS Administration for Children and FamiliesChild care assistance helps families with low income pay for child care so parents can work, look for work, or go to school or training.Extra HelpSocial Security AdministrationExtra Help may lower what people with Medicare and limited income and resources pay for Medicare Part D prescription drug coverage.Head StartHHS Administration for Children and FamiliesHead Start and Early Head Start offer free early learning, health and family support services to young children from families with low income.MSPCenters for Medicare & Medicaid ServicesMedicare Savings Programs help people with Medicare who have limited income and resources pay Medicare costs such as premiums.MedicareCenters for Medicare & Medicaid ServicesMedicare is federal health insurance for older adults and some younger people with disabilities.SSISocial Security AdministrationSSI pays monthly cash to people with limited income and resources who are older, blind or have a disability.TANFHHS Administration for Children and FamiliesTANF gives cash help and support services to families with children who have low income. Each state runs its own program.Pell GrantUS Department of EducationThe Federal Pell Grant helps undergraduate students with financial need pay for college. Unlike a loan, it usually does not have to be repaid.Property Tax ReliefState revenue departmentsMany states offer property tax relief that may lower property tax bills for some homeowners, such as older adults, people with disabilities and veterans.School MealsUSDA Food and Nutrition ServiceFree and reduced-price school meals help children eat well at school, and Summer EBT helps families buy food for children in the summer.WeatherizationUS Department of EnergyThe Weatherization Assistance Program makes free energy-saving home improvements, like insulation and heating repairs, for households with low income.