How to Estimate AGI

With a few simple calculations, you can figure out your adjusted gross income.

Adjusted gross income refers to the total amount of taxpayer income minus any deductions. Estimating your adjusted gross income for the year is not difficult provided you have accurate financial records concerning your personal and business finances. Any taxpayer who wants to know how much federal income taxes they will have to pay will need to be able with proper planning and research to estimate their adjusted gross income.

Instructions

1. Calculate your total gross income for the year. Include any income you receive from wages, salaries, tips, taxable interest, dividend income, alimony payments, business income, rental real estate, unemployment compensation, taxable IRA or pension distributions, farm income and any capital gains. Add up all of the sources of income that you received during the year to arrive at your total gross income.

2. Calculate total deductions for which you qualify. Include in your deductions calculation any expenses incurred from IRA contributions, medical savings account, interest paid on student loans, moving expenses, alimony paid, self-employed health insurance contribution and any penalties paid for early withdrawal from savings. Sum up all of the deductions for which you qualify.

3. Subtract all of your deductions from you total gross income to arrive at your estimated adjusted gross income. For instance, if you earned a total income of $80,000 and was able to deduct $26,000, your adjusted gross income would be $54,000.

References

• Cnnmoney.com: what's your AGI?