what is agi?

AGI stands for Adjusted Gross Income, which is a term used in the United States income tax system to calculate an individuals taxable income. It is the individual's total gross income minus specific deductions. Some common examples of deductions that reduce AGI include 401(k) contributions, health savings account contributions, and educator expenses. AGI is an important number that the IRS uses as a basis to help calculate how much an individual owes in taxes.