Rhode Island Modifications Increasing Federal AGI

Rhode Island Modifications Increasing Federal AGI

Rhode Island requires taxpayers to modify their Federal Adjusted Gross Income (AGI) when calculating their state income tax. These modifications are necessary to align Rhode Island tax rules with federal tax reporting, particularly for nonresident and resident taxpayers. The modifications increasing Federal AGI are reported on Schedule M and are added to the federal AGI to determine the Rhode Island Modified Federal AGI.

Key Modifications Increasing Federal AGI

• Income from obligations of any state or its political subdivision, other than Rhode Island — This includes interest income from bonds issued by states or their political subdivisions, excluding Rhode Island. This is reported on Line 2a of Schedule M (RI-1040 and RI-1040NR instructions).
• Additional modifications under P.L. 119-21, H.R.1 (2025) — Certain federal deductions taken on the federal return must be added back for Rhode Island tax purposes. These are detailed in RI Schedule HR1, which is used to calculate the Modified Federal AGI.

How to Report Modifications

Taxpayers must complete Schedule M to report all modifications. The total modifications increasing Federal AGI are calculated by adding lines 2a through 21 on Schedule M (as per RI-1040 and RI-1040NR instructions). This total is then entered on Line 2 of the Net Modifications section on Schedule M.

The net modifications are then used to adjust the federal AGI to determine the Rhode Island Modified Federal AGI, which is used for state tax calculations.

Important Notes

• Complete your federal tax return first, as it serves as the basis for your Rhode Island return.
• Attach Schedule M and supporting documentation if claiming any modifications.
• Electoral system contributions do not increase your tax or reduce your refund.

Source:

Form RI-1040 Instructions

Form RI-1040NR Instructions

RI Schedule HR1 - Individual

Disclaimer: Always verify with the official Federal or State Department of Revenue Forms and Instructions for the most accurate and up-to-date information.