Adjusted Gross Income (AGI) Calculator
Estimate your Adjusted Gross Income (AGI) by summing your income sources and subtracting above-the-line deductions allowed by the IRS.
How to use this tool
- Enter wages, salaries & tips, self-employment / business income, taxable interest income, ordinary dividend income, net capital gains, other income (alimony, rental, etc.), student loan interest paid, ira contribution deduction, self-employment tax deduction (50%) and other above-the-line deductions in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your adjusted gross income (agi) and the full breakdown beneath it.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
AGI = Gross Income − Above-the-Line Deductions
Gross Income = Wages + Business Income + Interest + Dividends + Capital Gains + Other Income
Above-the-Line Deductions include student loan interest, IRA contributions, self-employment tax (50%), educator expenses, and others listed on IRS Schedule 1.
How it works
Adjusted Gross Income (AGI) is the starting point for calculating federal income tax liability. It is derived by summing all taxable income and then subtracting specific above-the-line deductions that Congress allows before arriving at the standard or itemized deduction stage. AGI also serves as a threshold for many phase-outs and credits. This calculator covers the most common income and deduction items; individual situations may include additional items from IRS Form 1040 Schedule 1.
Worked example
Single Filer with Wages and IRA Contribution
- Sum income: $60,000 wages + $500 interest + $1,000 dividends = $61,500 gross income
- Above-the-line deductions: $2,500 student loan interest + $6,000 IRA contribution = $8,500
- AGI = $61,500 − $8,500 = $53,000
Adjusted Gross Income = $53,000
Common mistakes to avoid
- Confusing AGI with taxable income — AGI is calculated before the standard or itemised deduction; taxable income subtracts the applicable deduction from AGI. Using AGI to estimate tax owed (without the final deduction step) overstates the tax bill.
- Omitting above-the-line deductions that are easy to miss, such as the student loan interest deduction, educator expenses, or the self-employed health insurance deduction — these reduce AGI directly and can lower eligibility thresholds for credits.
- Including non-taxable income — gifts, inheritances, most life insurance proceeds, and qualified Roth distributions are excluded from gross income; adding them inflates AGI and may incorrectly phase out credits or deductions.
Key terms
- Gross Income
- Total income from all taxable sources before any deductions are applied.
- Above-the-Line Deductions
- Deductions subtracted from gross income to arrive at AGI; they are available regardless of whether the taxpayer itemizes or takes the standard deduction.
- IRA Deduction
- A deduction for contributions to a traditional Individual Retirement Account, subject to income limits and whether the taxpayer is covered by a workplace retirement plan.
- Student Loan Interest Deduction
- An above-the-line deduction of up to $2,500 per year for interest paid on qualified student loans, subject to income phase-outs.
- Modified Adjusted Gross Income (MAGI)
- AGI with certain deductions added back; used to determine eligibility for specific tax benefits like Roth IRA contributions and premium tax credits.
Frequently asked questions
- Why does AGI matter beyond calculating taxes?
- AGI is the gatekeeper for dozens of tax benefits. Roth IRA eligibility, the child tax credit phase-out, medical expense deductions (limited to amounts above 7.5% of AGI), and IRMAA Medicare surcharges all depend on AGI. Reducing AGI through above-the-line deductions can unlock multiple benefits simultaneously.
- What is Modified AGI (MAGI) and how does it differ from AGI?
- MAGI starts with AGI and adds back certain deductions (e.g. student loan interest, IRA deductions, excluded foreign income). Different tax provisions use different MAGI calculations. For Roth IRA eligibility the MAGI definition differs from the one used for premium tax credits; check the specific provision's definition.
- Can I reduce my AGI after the tax year ends?
- Yes -- contributions to a traditional IRA (up to the tax filing deadline) and contributions to a Health Savings Account (HSA) for the prior year can reduce AGI retroactively. SEP-IRA contributions for the prior year can be made up to the extended filing deadline.