How to Calculate AGI on Your W-2 Forms

The adjusted gross income, or AGI, is the total amount of money a taxpayer must pay income tax on. It is adjusted based on financial gains and losses that are specified by the IRS. Fill out Form 1040, the U.S. Individual Income Tax Return, to figure out adjusted gross income. The current year's W-2 forms and all other financial documents are also needed. Employers must send W-2 forms to employees by January 31st of each tax year.

Things You'll Need

• Form 1040
• W-2 Form
• Financial Statements

Instructions

1. Sum up the total salaries earned for the year as indicated by the current year's W-2 form.

2. Add any additional wages, salaries and tips earned in the year but not listed on the W-2 form.

3. Enter the total sum of steps 1 and 2 onto line 7 of the 1040 Form.

4. Add any additional income earned during the year as specified on lines 8 -- 21. Income includes alimony, capital gain, pensions, rental real estate, social security benefits, or farm income.

5. Add lines 7 through 21 and put the sum on line 22.

6. Add any expenses or losses incurred during the year as specified in lines 23 -- 35 of the Form 1040. Losses include educator expenses, moving expenses, alimony paid, tuition and fees, or IRA deductions.

7. Add lines 23 through 35 and put the sum on line 36.

8. Subtract line 36 from line 22 to find the AGI.

References

• Form 1040; Department of the Treasury - Internal Revenue Service; U.S. Individual Income Tax Return
• IRS; 1040 Introductory Material
• IRS; Instructions for Forms W-2 and W-3 (2011); Wage and Tax Statement and Transmittal of Wage and Tax Statements