Which of the following expenses is NOT accounted for in MAGI?

To understand why exceeding medical costs is not accounted for in Modified Adjusted Gross Income (MAGI), it's important to grasp how MAGI is calculated and what components are included or excluded within that framework.

MAGI is a measure used for determining eligibility for certain tax benefits and is derived from the Adjusted Gross Income (AGI). It typically includes income components like wages, dividends, and interest but excludes certain specific items.

When it comes to medical expenses, it's essential to note that only qualified medical expenses, when itemized, can be deducted to reduce AGI. If someone has medical expenses that exceed a particular threshold of their AGI, the excess does not influence their MAGI calculation. Therefore, even if these expenses are significant, they do not have a direct impact on the MAGI figure.

In contrast, losses from partnerships, exclusion for adoption expenses, and foreign income exclusions can all affect the MAGI calculation as they either contribute to income or qualify for exclusions that change the overall income measurement. Thus, medical costs that exceed the threshold operate outside of MAGI adjustments.