Modified AGI

Modified AGI is adjusted gross income that has been adjusted in some manner for the calculation of a credit or a limitation. AGI can be modified in various ways for various calculations. For the American opportunity tax credit, for example, modified AGI is AGI increased by income excluded from sources in Puerto Rico or certain U.S. possessions. For the exclusion of savings bond income, modified AGI is AGI determined without the deduction for higher education expenses, the savings bond interest exclusion, and several other deductions and exclusions. Modified AGI for Social Security benefits is defined differently.