U.S. · Form 8960 line 13
Form 8960 line 13 MAGI.
When MAGI equals AGI, and the IRS worksheet for when it does not.
If you did not exclude income under section 911 and you do not own an interest in a CFC or PFIC, line 13 is your AGI from Form 1040 or 1040-SR. Otherwise use the Line 13 MAGI Worksheet: AGI plus the foreign earned income exclusion (Form 2555 line 42) less the allocable deductions (Form 2555 line 44), plus adjustments for certain CFCs and PFICs.
Run the MAGI worksheet
Result
Reference table
| Situation | MAGI on line 13 |
|---|---|
| No section 911 exclusion; no CFC or PFIC interest | Your AGI from Form 1040 or 1040-SR. |
| Section 911 exclusion | AGI increased by the excluded amount over any deductions or exclusions disallowed under section 911(d)(6). |
| Section 1291 fund (PFIC) | Increase AGI by excess distributions treated as dividends, and by gain treated as an excess distribution, that are in MAGI but not in regular gross income. |
| CFC or QEF without a 1.1411-10(g) election | Decrease AGI by section 951(a), 951A or 1293(a) inclusions; increase by section 959(d) or 1293(c) distributions included in NII as a dividend; adjust for gain or loss and interest expense as the regulations provide. |
| CFC or QEF held in a section 1411 business, or with a 1.1411-10(g) election | Increase AGI by section 959(d) or 1293(c) distributions included in NII as a dividend. |
The worksheet in the IRS text
Line 1 is your adjusted gross income. Line 2(a) is the foreign earned income exclusion from Form 2555 line 42, line 2(b) is the deductions reported on Form 2555 line 44 allocable to that exclusion (shown in parentheses, so subtracted), and line 2(c) combines them. Line 3 is the adjustments for certain CFCs and PFICs. Line 4 is the sum of lines 1, 2(c) and 3, and you enter it on Form 8960 line 13. The detailed CFC and PFIC adjustments cite Regulations section 1.1411-10(e)(1).
Worked example
AGI of $230,000, a foreign earned income exclusion of $60,000 and $10,000 of allocable deductions give line 2(c) = $60,000 − $10,000 = $50,000. With no CFC or PFIC adjustment, line 4 is $230,000 + $50,000 = $280,000. For a single filer that is $80,000 over the $200,000 threshold. All figures are illustrative.
What counts as most filers
The simple case covers most people: with no exclusion and no CFC or PFIC, copy AGI. The worksheet exists for expatriates who use Form 2555 and for owners of foreign corporations or funds. Estates and trusts use different lines (19a is AGI for estates and trusts).
Next step
Compare MAGI with the line 14 threshold and finish on line 17. Line 12 comes from line 8.
Sources
- Instructions for Form 8960 (2025): Line 13 and the MAGI worksheet. Read November 2, 2026.
- Form 8960 (2025): The form itself, for exact line wording. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is line 13 on Form 8960?
Modified adjusted gross income. It is your AGI unless you exclude foreign earned income under section 911 or own certain CFCs or PFICs.
When is MAGI the same as AGI for NIIT?
When you did not exclude amounts under section 911 and do not own, directly or indirectly, an interest in a CFC or PFIC, enter AGI from Form 1040 or 1040-SR.
How does the foreign earned income exclusion change MAGI?
You add back the excluded amount from Form 2555 line 42, less the allocable deductions on line 44, per the worksheet.
Where do CFC and PFIC adjustments go?
On line 3 of the MAGI worksheet, following Regulations section 1.1411-10(e)(1) and the categories in the instructions.
Which line gets the worksheet total?
Worksheet line 4 is entered on Form 8960, line 13.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.