What is AGI?
Adjusted gross income is gross taxable income minus qualifying adjustments to income. It is used as the starting point for several later U.S. federal income-tax calculations.
This calculator organizes common income and adjustment categories. It does not determine whether every amount is taxable or deductible under current law.
- Gross income combines the entered income categories.
- Adjustments are deductions taken before standard or itemized deductions.
- AGI equals gross income minus adjustments.
Uses of AGI
AGI can affect deductions, credits, retirement contributions, healthcare provisions, and other tax items. Modified adjusted gross income may start with AGI and add back specified amounts.
Verify the result against the applicable tax-year instructions or a qualified tax professional because tax treatment and eligibility can change.
- Estimate the base used by tax calculations.
- Compare the effect of permitted adjustments.
- Prepare information before completing a return.
- Do not confuse AGI with taxable income.
How to calculate AGI
Add the entered salary, business, investment, capital-gain, retirement-distribution, and other income. Then total eligible adjustments such as IRA contributions, student-loan interest, educator expenses, HSA contributions, and other listed deductions.
With $71,200 of gross income and $4,000 of adjustments, estimated AGI is $67,200. The calculator enforces the referenced source limits of $250 for educator expenses and $2,500 for student-loan interest.
- Gross income = sum of entered income.
- Total adjustments = sum of entered adjustment categories.
- AGI = gross income - total adjustments.
- Enter zero for categories that do not apply.
Frequently asked questions
AGI is not the same as modified adjusted gross income or taxable income. Each measure applies additional rules.
Category caps mirror the referenced calculator and are not a guarantee of the deduction allowed for a particular taxpayer or tax year.