Adjusted Gross Income (AGI)
Know your baseline. Calculate your AGI—the starting point for many tax deductions and credits on your federal return.
Total Adjustments: $6,350
What is AGI and why does it matter?
I genuinely believe that AGI is the single most important number on your tax return. It’s not just about how much you earned; it’s about how much of that income the IRS considers "taxable" after you take advantage of specific legal deductions. Your AGI determines whether you qualify for child tax credits, student loan interest deductions, and even certain health insurance subsidies.
Common Adjustments to Income:
- IRA Contributions: Money put into a Traditional IRA can often be deducted from your gross income.
- Student Loan Interest: You can typically deduct up to $2,500 of interest paid on qualified student loans.
- HSA Contributions: Health Savings Account contributions are "above-the-line" deductions, meaning they lower your AGI directly.
Note: This calculator provides an estimate for common adjustments. For complex tax situations (self-employment, moving expenses for military, etc.), please consult IRS Form 1040 Schedule 1.