What is modified adjusted gross income (MAGI)?

MAGI is calculated by adding back certain deductions and exclusions to your adjusted gross income (AGI). This includes income from Puerto Rico, foreign earned income, and certain other items. It's the figure used to determine eligibility for many tax deductions and credits.

How does the overtime deduction work?

The overtime deduction allows eligible taxpayers to deduct up to $12,500 (single) or $25,000 (married filing jointly) in overtime pay. The deduction phases out gradually as MAGI exceeds $150,000 (single) or $300,000 (married filing jointly).

What is the senior bonus deduction?

Taxpayers 65 and older can claim an additional deduction of up to $6,000 (single) or $12,000 (married filing jointly). This deduction also phases out based on MAGI, starting at $75,000 (single) and $150,000 (married filing jointly).

What is modified adjusted gross income (MAGI)?

MAGI is calculated by adding back certain deductions and exclusions to your adjusted gross income (AGI). This includes income from Puerto Rico, foreign earned income, and certain other items. It's the figure used to determine eligibility for many tax deductions and credits.

How does the overtime deduction work?

The overtime deduction allows eligible taxpayers to deduct up to $12,500 (single) or $25,000 (married filing jointly) in overtime pay. The deduction phases out gradually as MAGI exceeds $150,000 (single) or $300,000 (married filing jointly).

What is the senior bonus deduction?

Taxpayers 65 and older can claim an additional deduction of up to $6,000 (single) or $12,000 (married filing jointly). This deduction also phases out based on MAGI, starting at $75,000 (single) and $150,000 (married filing jointly).

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