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.
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
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.