So, for the first time, I'm potentially passed the income limit for a Roth IRA. But I didn't realize it until just now. And I'm trying to figure out if I need to convert my Roth contributions back to traditional before doing a backdoor.

Can someone explain to me how to calculate MAGI like I'm 5?

Let's say my taxable income is 160k.
Let's estimate I made 3k in interest/dividends
And I take standard deductions (15,750)
Single person household

Do I subtract 15k from 160k, then add 3k back in?

Is it best to wait till I have all my 1099's and stuff to calculate it to determine if I need to make the conversion? Or is there any need to rush it?

Thanks

No need to rush. You have until the filing deadline plus extensions before you have to make corrective distributions.

From Google, how to calculate MAGI:

https://www.google.com/search?q=how+to+calculate+magi&rlz=1C1GCEU_enUS1001US1001&oq=how+to+calculate+magi&gs_lcrp=EgZjaHJvbWUyDAgAEEUYORixAxiABDIHCAEQABiABDIHCAIQABiABDIHCAMQABiABDIHCAQQABiABDIHCAUQABiABDIHCAYQABiABDIHCAcQABiABDIHCAgQABiABDIHCAkQABiABNIBCTQ5NTlqMGoxNagCCLACAfEFRoYD197oKa4&sourceid=chrome&ie=UTF-8

https://www.irs.gov/credits-deductions/modified-adjusted-gross-income

Quote:

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Roth IRA contributions
Determine your MAGI by doing the following to your AGI:

Add:

IRA deduction (Form 1040 Schedule 1 PDF, line 20)
Student loan interest deduction (Form 1040 Schedule 1 PDF, line 21)
Savings bond interest that's excludable (Form 8815, line 14)
Employer-provided adoption benefits excluded from income (Form 8839, line 28)
Foreign earned income and/or housing excluded from income (Form 2555, line 45)
Foreign housing deduction (Form 2555, line 50)
Subtract:

Income from converting an IRA (other than a Roth IRA) to a Roth IRA Form 1040 or 1040-SR, line 4b
Rollovers from a qualified retirement plan to a Roth IRA Form 1040 or 1040-SR, line 5b

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It's AGI plus adding back in any of these credits. It's unlikely you claim any of these (except maybe the student loan interest deduction)

So your AGI is 160k in w2 + 3k in 1099 so 163k agi then add back any of those deductions (likely 0) and your MAGI is 163k. I believe you can still reduce your MAGI if you are HSA eligible and haven't maxed out the contribution yet, HSA contributions are above the line deductions that lower your AGI and thus lower MAGI.

The MAGI calculation is different for each application (i.e. IRMAA or Lifetime learnee credit) so it's always best to go back to the source.