AGI Explained: What Counts Toward Adjusted Gross Income and How to Find Yours
Adjusted Gross Income (AGI) is your total income minus specific "above-the-line" adjustments. It appears on Form 1040 Line 11 and affects tax credits, IRA contributions, and more. Here's what counts and how to find yours.
What Is AGI?
AGI = Total income from all sources minus above-the-line deductions. It comes before the standard deduction or itemized deductions. Taxable income = AGI minus standard/itemized deduction minus qualified business income deduction.
What Income Counts Toward AGI?
- Wages, salaries, tips
- Interest, dividends, capital gains
- Self-employment income
- Rental income
- Retirement distributions (IRA, 401k, pension)
- Unemployment, Social Security (taxable portion)
- Alimony received, etc.
Exclusions (not in AGI): municipal bond interest, certain foreign earned income, gifts, life insurance proceeds.
Common Above-the-Line Deductions
- Traditional IRA contributions
- Student loan interest (max $2,500; phase-out applies)
- Educator expenses (max $300 per educator)
- Self-employed health insurance
- 50% of self-employment tax
- SEP, SIMPLE contributions
- Alimony paid (pre-2019 divorces)
Why Your AGI Matters
AGI determines eligibility for the Earned Income Tax Credit, Child Tax Credit, Roth IRA contributions, student loan interest deduction, premium tax credits, and free e-file. A lower AGI can unlock more benefits.
Where to Find Last Year's AGI
- Form 1040 Line 11 (or Line 8b on older forms)
- Your copy of your filed return
- IRS transcript (create an account at IRS.gov)
Calculate Your AGI
AGI Calculator – enter income and adjustments →
Tax Refund Calculator – full refund estimate →
Consult IRS publications or a tax professional for your situation.