AGI Calculator
Calculate your Adjusted Gross Income (AGI) for tax purposes. Understand how deductions and adjustments affect your taxable income.
What is AGI? Adjusted Gross Income (AGI) is your total gross income minus specific deductions. It's an important number that affects your tax liability and eligibility for certain credits and deductions.
What Is Adjusted Gross Income (AGI)?
Adjusted Gross Income (AGI) is a key figure in your federal tax return. It represents your total income minus specific deductions (adjustments). AGI is used to determine your eligibility for many tax credits and deductions.
How AGI Is Calculated
The basic formula for calculating AGI is:
- Total Income includes wages, interest, dividends, business income, capital gains, retirement distributions, and other income sources.
- Adjustments to Income (sometimes called "above-the-line deductions") include items like educator expenses, student loan interest, retirement contributions, self-employment tax deduction, and health savings account contributions.
Why AGI Is Important
Your AGI affects many aspects of your tax return, including:
- Eligibility for certain tax credits
- Qualifying for certain itemized deductions
- Amount of taxable Social Security benefits
- Ability to contribute to retirement accounts like IRAs
- Student loan repayment plans and forgiveness programs
AGI vs. Modified Adjusted Gross Income (MAGI)
Some tax benefits use Modified Adjusted Gross Income (MAGI) instead of AGI. MAGI is your AGI with certain deductions added back in, such as student loan interest, IRA contributions, and foreign income exclusions. The specific adjustments vary depending on the tax benefit.