To find your Adjusted Gross Income (AGI), you need to calculate your total income and then subtract certain adjustments or deductions. The Internal Revenue Service (IRS) defines AGI as "gross income minus adjustments to income". Your AGI is an important number used by the IRS to determine your tax liability and eligibility for various deductions and credits.
To calculate your AGI, follow these steps:
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Determine your gross income, which includes:
- Wages on a W-2 or 1099 form
- Self-employment income on a Schedule C
- Interest and dividends
- Alimony from an ex-spouse (for agreements prior to 2019)
- Capital gains
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Subtract eligible adjustments or deductions from your gross income. Some common examples of deductions that reduce AGI include:
- 401(k) contributions
- Health savings account contributions
- Educator expenses
- Student loan interest
- Retirement plan contributions
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After subtracting your adjustments from your total income earned, youll get your AGI, which will be reported on line 11 of Form 1040.
Your AGI is used to determine your taxable income, which is your AGI minus either the standard deduction or the total of itemized deductions, whichever is greater. It is also used to calculate your Modified Adjusted Gross Income (MAGI), which determines your eligibility for certain deductions, credits, and retirement plans.
If you need to find your prior-year AGI, you can refer to your previous tax returns or use the IRS's Electronic Filing PIN Request service.
