The crash happened Friday in Hattiesburg, Miss., The (New Oreans) Times-Picayune reported.
The couple's 12-year-old daughter, Twila Wise Johnson, survived the crash.
Awood Johnson, 44, was best known for his work in the 1990s with the No Limit Records label. "Sky's the Limit," his 1998 debut album, hit No. 15 on the Billboard 200 and No. 3 on the hip-hop/R&B albums chart.
Fans took to Twitter to express their condolences over Johnson's passing.
"RIP to my brother, Mr. Magic and his wife," fellow rapper Mystikal tweeted. "God bless their families."
"R.I.P. MR MAGICPlease keep his family, friends in ur prayers #GreatDude #9thWard," Mannie Fresh, a New Orleans rapper, tweeted.
Funeral arrangements have not yet been made, Johnson's sister, Timisha Brooks said.
2014: The Year in Music [PHOTOS]