Adjusted Gross Income (AGI) Calculator
Calculate your AGI by subtracting adjustments from gross income
Common adjustments: IRA contributions, student loan interest, educator expenses, HSA contributions
How to Use This Calculator
Enter your gross income
Input your total gross income from all sources (wages, interest, dividends, etc.) before any deductions.
Enter adjustments to income
Add up all eligible adjustments (above-the-line deductions) such as IRA contributions, student loan interest, educator expenses, and HSA contributions.
Calculate your AGI
Click the calculate button to see your Adjusted Gross Income, which is used as the basis for many tax calculations and eligibility determinations.
Formula
AGI = Gross Income - Adjustments to Income
Example:
Gross Income = $75,000
Adjustments = $3,000 (IRA contribution) + $500 (student loan interest) = $3,500
AGI = $75,000 - $3,500 = $71,500
About Adjusted Gross Income (AGI) Calculator
The Adjusted Gross Income (AGI) Calculator is an essential tool for understanding your tax situation and financial planning. AGI is a critical figure in the U.S. tax system that represents your total gross income minus specific adjustments (also known as "above-the-line" deductions). Unlike standard deductions or itemized deductions, adjustments to income are subtracted before you calculate your taxable income, making them particularly valuable for reducing your overall tax burden. Your AGI serves as the foundation for many important tax calculations, including determining your eligibility for various tax credits, deductions, and retirement account contributions. It also affects your ability to claim certain benefits like the Earned Income Tax Credit, education credits, and IRA contribution limits. Understanding your AGI helps you make informed decisions about retirement planning, tax strategies, and financial goal setting. This calculator simplifies the process by allowing you to input your gross income and applicable adjustments to quickly determine your AGI. Common adjustments include contributions to traditional IRAs, student loan interest payments, educator expenses, health savings account (HSA) contributions, self-employment taxes, and alimony payments (for agreements made before 2019). By calculating your AGI, you can better understand your tax bracket, plan for deductions, and optimize your tax strategy throughout the year.
When to Use This Calculator
- Tax planning: Estimate your AGI to plan deductions and credits
- Retirement planning: Determine IRA contribution limits based on AGI
- Loan applications: Many lenders use AGI to assess financial capacity
- Financial aid: AGI is often required for college financial aid applications
Why Use Our Calculator?
- ✅ Quick calculation: Get your AGI instantly without manual math
- ✅ Tax planning: Understand your tax situation before filing
- ✅ Free tool: No registration or payment required
- ✅ Educational: Learn how adjustments affect your AGI
Frequently Asked Questions
What is the difference between gross income and AGI?
Gross income is your total income from all sources before any deductions. AGI is gross income minus specific adjustments (above-the-line deductions). AGI is used as the starting point for calculating taxable income.
What are common adjustments to income?
Common adjustments include traditional IRA contributions, student loan interest, educator expenses, HSA contributions, self-employment taxes, alimony (pre-2019 agreements), and certain business expenses for reservists and performing artists.
Why is AGI important?
AGI is important because it determines eligibility for many tax credits, deductions, and benefits. It also affects IRA contribution limits, education credits, and various tax benefits that phase out at certain income levels.
Can AGI be negative?
No, AGI cannot be negative. If adjustments exceed gross income, AGI is zero. This calculator automatically ensures AGI is never negative.
Where can I find my AGI on my tax return?
Your AGI appears on line 11 of Form 1040 (for tax year 2022 and later). On older forms, it may appear on different lines depending on the tax year.