Which of the following is included in the calculation of modified adjusted gross income (MAGI)?

Modified Adjusted Gross Income (MAGI) is a crucial figure that determines eligibility for various tax benefits and credits. The calculation of MAGI begins with the Adjusted Gross Income (AGI) and makes certain adjustments or adds back specific excluded income.

The correct choice incorporates adjusted gross income with specific exclusions, meaning that certain amounts that are typically excluded from AGI—like foreign earned income or certain deductions—are added back to arrive at MAGI. This comprehensive approach ensures that the measurement of an individual's financial standing is more accurate and reflective of their ability to pay taxes, thus impacting eligibility for various tax programs and benefits.

The other choices do not accurately reflect the components of MAGI. Tax-exempt income from investments is a factor but does not represent the complete calculation. Income solely from wages does not encompass the full picture of one's financial situation necessary for MAGI, as it disregards other sources of income and potential deductions. Standard deductions are not included in the calculation of MAGI since they are typically used to determine taxable income and not part of the gross income figures used in calculating AGI or MAGI.