At a glance:
- AGI is your total income minus eligible deductions for tax purposes.
- Calculate AGI by adding all income and subtracting tax deductions.
- AGI can be zero or negative depending on your tax situation.
What is adjusted gross income (AGI)?
For tax purposes, your adjusted gross income, or AGI, is essentially your total or gross income minus eligible deductions. You can use our adjusted gross income (AGI) calculator below to estimate your AGI using the most common income and deductions for U.S. taxpayers.
How to calculate adjusted gross income (AGI)?
The AGI calculation is relatively straightforward. Using the income tax calculator, simply add all forms of income together, and subtract any tax deductions from that amount. Depending on your tax situation, your AGI can even be zero or negative.
AGI deductions
There are some restrictions on specific AGI deductions to note when using our gross income calculator:
- Qualified educator expense deductions are capped at $300.
- Student loan interest deduction is capped at $2,500. You are not eligible for the deduction if your total income is greater than $90,000 as an individual filer ($180,000 for married filing jointly).
How to use the AGI calculator
Step 1 – Select your filing status
Step 2 – Enter all eligible income
Step 3 – Input all eligible deductions
Step 4 – Click calculate.
Note:Only include alimony payments you received and alimony paid if you entered your divorce or separation agreement before Jan. 1, 2019.
AGI Calculator
AGI cannot exceed total income reported and is often lower. It can be negative.
Total income includes all of your annual earnings that are subject to income tax.
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This article is for informational purposes only and not legal or financial advice.
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FAQs
The AGI calculation is relatively straightforward. It is equal to the total income you report that's subject to income tax—such as earnings from your job, self-employment, dividends and interest from a bank account—minus specific deductions, or “adjustments” that you're eligible to take.
Will your AGI ever be bigger than your gross income? ›
As you prepare your tax return, it's important to note that your AGI will never total more than your Gross Total Income.
What is the fastest way to get my AGI? ›
If you do not have a copy of your tax return, you can get your AGI from one of the IRS self-service tools: Use your online account to immediately view your AGI on the Tax Records tab. If you're a new user, have your photo identification ready.
What is the equation for AGI? ›
To calculate your AGI: Calculate your total taxable income. Sum totals of taxable income from all sources. Subtract allowable deductions and expenses from the sum.
Why is my tax return rejected because of AGI? ›
When you enter your prior year AGI or PIN, it must match the IRS master file exactly. If your return was rejected for an AGI or PIN mismatch, it means that what you entered doesn't match their records. The IRS only requires one of these to match their records to get accepted. Most people use their prior year AGI.
What is the minimum AGI to pay taxes? ›
The minimum income amount depends on your filing status and age. In 2023, for example, the minimum for Single filing status if under age 65 is $13,850. If your income is below that threshold, you generally do not need to file a federal tax return.
How do I calculate my modified adjusted gross income? ›
Your MAGI (modified adjusted gross income) is your AGI plus certain deductions you must “add back.” These deductions include IRA contributions, student loan interest, one-half of self-employment tax, qualified tuition expenses, and more.
What is an example of adjusted gross income? ›
To boil it down, it's simply your total gross income minus specific tax deductions. Some common examples of eligible deductions that reduce adjusted gross income include deductible traditional IRA contributions, health savings account contributions, and educator expenses.
Is your AGI your total annual income? ›
Your adjusted gross income (AGI) is your total (gross) income from all sources minus certain adjustments such as educator expenses, student loan interest, alimony payments and retirement contributions. If you use software to prepare your return, it will automatically calculate your AGI.
Can I file my taxes without my AGI from last year? ›
If you lack the previous year's AGI, don't fret. Simply enter $0 as your prior-year AGI on line 38 of Form 1040 or line 21 of Form 1040-SR.
You can determine your AGI by calculating your annual income from wages and other income sources (gross income), then subtracting certain types of payments, such as student loan interest, alimony, retirement contributions, or health savings account contributions, you've made during the year.
What happens if you put the wrong AGI? ›
If your prior year AGI is wrong when you file, the IRS will reject your return. In most cases, when the IRS has rejected your tax return AGI, you can easily fix the amount and e-file your return again.
What is the formula for adjusted net income? ›
It can be calculated using the formula: ANI = Net Income – Adjustments. It adjusts for non-recurring and non-cash items to provide a non-GAAP measure of a firm's net profitability.
Can I calculate my AGI from my W2? ›
Your adjusted gross income acts as a guidepost for several aspects of your finances. Your AGI determines whether you're eligible for various tax credits during tax time. While you can't find AGI on the W2 your employer sent you, you'll use your Form W-2 to help calculate AGI.
