ROTH Contribution- which line on 1040
I want to encourage a client to contribute to his ROTH IRA. However, I want to make sure which line on the 1040 I need to address for MAGI. Is it line 11 adjusted gross income of $194,000? Or, line 15 of taxable income of $155,000?
Couple is married filing jointly.
In either case would they have qualify in 2021 if incomes remain the same?
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2021-09-10 20:40
MAGI does not show on any specific Form 1040 line. MAGI is calculated starting with AGI and the modifications are determined from Worksheet 2-1 on p 39 of Pub 590 A. The only subtraction is for the taxable portion of any Roth conversions, but there are several possible additions. The resulting MAGI is then compared to the Roth phaseout range for 2021, where regular contributions start to be phased out at 198,000 MAGI and are completely eliminated at 208,000. Tax programs generally flag any excess Roth contribution if the contribution is entered into the program.