Adjusted Gross Income (AGI) Calculator
Calculate your AGI for tax planning and determine your taxable income and tax bracket
Calculate Your Adjusted Gross Income
Gross Income Sources
+ More Income Sources
Above-the-Line Deductions (Adjustments to Income)
+ More Adjustments
AGI Calculation Results
💡 AGI Information
• AGI determines your tax bracket and eligibility for deductions
• Above-the-line deductions reduce your AGI dollar-for-dollar
• Lower AGI may qualify you for additional tax credits
• AGI is used as the basis for calculating modified AGI (MAGI)
Example Calculation
Tax Professional Example
Salary: $75,000
Business Income: $25,000
Interest/Dividends: $2,000
Total Gross Income: $102,000
Adjustments
IRA Contribution: $6,000
HSA Contribution: $3,500
Self-Employment Tax: $1,766
Total Adjustments: $11,266
Result
AGI: $90,734
Tax Bracket: 22%
Tax Savings: $2,479
AGI vs Other Income Terms
Gross Income
All taxable income before deductions
AGI
Gross income minus above-the-line deductions
Taxable Income
AGI minus standard/itemized deductions
MAGI
AGI with certain items added back
Tax Planning Tips
Maximize above-the-line deductions first
Consider retirement contributions to reduce AGI
HSA contributions provide triple tax benefit
Lower AGI may qualify for more tax credits
Keep records of all deductible expenses
Understanding Adjusted Gross Income (AGI)
What is AGI?
Adjusted Gross Income (AGI) is your total gross income minus specific deductions called "above-the-line" deductions. It's a crucial figure that determines your tax bracket, eligibility for tax credits, and serves as the starting point for calculating your taxable income.
Why AGI Matters
- •Determines your federal income tax bracket
- •Affects eligibility for tax credits and deductions
- •Used to calculate modified AGI (MAGI)
- •Required for electronic tax filing verification
AGI Calculation Formula
AGI = Gross Income - Above-the-Line Deductions
- Gross Income: All taxable income sources
- Above-the-Line Deductions: Specific adjustments allowed by IRS
- Result: Your adjusted gross income
Example: $100,000 gross income - $15,000 adjustments = $85,000 AGI. This puts you in the 22% tax bracket instead of 24%.
Common Above-the-Line Deductions
Retirement & Savings
- • Traditional IRA contributions
- • 401(k) employee contributions
- • HSA contributions
- • SEP-IRA and SIMPLE IRA
Education & Professional
- • Student loan interest (up to $2,500)
- • Tuition and fees
- • Educator expenses (up to $250)
- • Professional development costs
Business & Self-Employment
- • Half of self-employment tax
- • Self-employed health insurance
- • Business expenses
- • Home office deductions