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 is an important amount on your tax return since it is used to determine your eligibility for various 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 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. Your AGI is used to determine:

• Whether you qualify for specific cretids, such as the Child Tax Credit or Education credits
• Your standard or itemized deduction limit
• Whether you can contribute to specific retirement accounts

Knowing your AGI is critical for properly preparing and filing your taxes. Your AGI is used to verify your identity when contacting the IRS and electronically filing your tax return.

This entry was posted on Sunday, April 6th, 2025 at 8:46 pm and is filed under Income, Tax Related Questions. 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.