How to Figure Out Adjusted Gross Income

You can calclulate your adjusted gross income.

Your federal adjusted gross income, or AGI, is your pre-tax income from all sources minus specifically stated Internal Revenue Service deductions. The IRS uses your adjusted gross income to determine your tax liability and what benefits and programs you may be eligible for. AGI also determines how much you can contribute annually to tax-deferred retirement accounts. There are a number of ways you can figure out your adjusted gross income.

Things You'll Need

• Last year's federal tax return
• Calculator

Instructions

1. Review your most recent federal tax return. Locate your adjusted gross income; it is the last number on the first page of IRS Form 1040.

2. Search online for an adjusted gross income calculator, such as the one available through the CNN Money website. This will give you a timely snapshot of your AGI if you need a figure that is more current than last year's tax return.

3. Complete the online calculator fields with your income from all sources and any allowable deductions you may have. Remember, these deductions are not the same as your itemized or standard deductions on Form 1040. The allowed deductions for calculating AGI include IRA contributions, student loan interest, moving expenses, half of the self-employment tax, self-employed health insurance contributions and contributions to SEP, SIMPLE and qualified plans.

4. Click the "Calculate" button to view your adjusted gross income.

5. Use a calculator to manually figure out your adjusted gross income. Add together your income from all sources. Subtract your allowable deductions for calculating AGI. The number left over is your adjusted gross income.

References

• Internal Revenue Service: Definition of Adjusted Gross Income
• QuizLaw: What Is My Adjusted Gross Income?

Resources

• CNN Money: Adjusted Gross Income Calculator