Bona fide Resident of American Samoa – MAGI Adjustment for Child Tax Credit (CTC) | 1040.com®

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Article: 50651

Overview

If you are a bona fide resident of American Samoa, you may be required to modify your Adjusted Gross Income (AGI) to correctly calculate eligibility for the Child (CTC).

For Tax Year 2025:

  • The maximum Child Tax Credit is up to $2,200 per qualifying child.
  • Up to $1,700 per child may be refundable.

To ensure the correct credit amount is calculated, eligible taxpayers must adjust their Modified Adjusted Gross Income (MAGI) using the Additional Deductions – Modified Adjusted Gross Income screen in 1040.com.

MAGI for American Samoa Residents

For Child Tax Credit, MAGI is used instead of standard AGI to apply income limits and determine credit eligibility.

  • MAGI begin with Adjusted Gross Income (AGI).
  • Certain income items (including territory-specific exclusions) may be added back or excluded as required by IRS rules for American Samoa residents.
  • MAGI is not entered directly on the return and does not appear as a separate line on Form 1040.

1040.com uses the MAGI calculation to:

  • Determine whether the taxpayer qualifies for the CTC.
  • Apply any phaseouts.
  • Calculate the correct refundable and nonrefundable portions of the credit.

How to Report

  1. Go to the Review tab on the left side of the screen.
  2. Under the Federal Taxes section, click I’d like to see the forms I’ve filled out or search for a form.
  3. In the search box, type Additional Deductions – Modified Adjusted Gross Income.
    • Alternatively, click the General tab and locate the form there.
  4. Select Additional Deductions – Modified Adjusted Gross Income to add and open the form.
  5. Enter the applicable information to adjust MAGI.
  6. Click Save to apply the changes.

Notes

  • This adjustment applies only to taxpayers who are bona fide residents of American Samoa.
  • MAGI adjustments affect Child Tax Credit eligibility only and do not change AGI shown on the return.
  • MAGI is calculated automatically once the required information is entered.
  • Entering incorrect MAGI information may result in an incorrect CTC amount.

Additional Resources

For further information, see:

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