How Do I Figure Out My Adjusted Gross Income (AGI)?

Your Adjusted Gross Income (AGI) is your total gross income minus specific deductions, commonly known as “adjustments to income.” It’s an important amount on your tax return since it influences your eligibility for numerous credits and deductions.

Your gross income comprises the following:

Wages and Salaries

Business or freelancing income

Interest and Dividends

Capital Gains

Rental Income

Retirement Distributions

To determine AGI, deduct permissible adjustments like:

Contributions to traditional IRAs or HSAs

Student Loan Interest

Educator expenditures

Tuition and expenses, if eligible.

Alimony payments (for divorces completed before 2019)

Line 11 of IRS Form 1040 contains information about your adjusted gross income. It is used to determine what:

Whether you qualify for specific benefits, such as the Child Tax Credit or Education benefits

Your standard or itemized deduction limit.

Can you contribute to specific retirement accounts?

Knowing your AGI is critical for properly preparing and filing your taxes.

This entry was posted on Sunday, April 6th, 2025 at 8:46 pm and is filed under Income. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.