Modified Adjusted Gross Income (MAGI) is a term used in the United States tax system to refer to an individuals adjusted gross income (AGI) after taking into account certain allowable deductions and credits. MAGI is used to determine eligibility for certain tax benefits, such as premium tax credits and other savings for Marketplace health insurance plans, Medicaid, and the Childrens Health Insurance Program (CHIP) . The definition of MAGI varies depending on the purpose for which the related calculation is being used. For example, certain tax calculations are based on modified versions of AGI that may add certain items to AGI that were excluded in computing both gross income and adjusted gross income, such as tax-exempt interest, the excluded portion of Social Security benefits, and tax-free foreign earned income.