How to Calculate AGI (Adjusted Gross Income) - with Formula and Calculator - OneSDR

If you’ve ever filed a U.S. tax return, you’ve probably seen the term AGI or Adjusted Gross Income. But what exactly is it—and why does it matter?

In this article, we’ll break down what AGI is, why it’s important, and how you can calculate it yourself. Don’t worry—it’s simpler than it sounds!

Table of Contents

🔢 Want to skip the math? Use our calculator to enter your income and adjustments—and it’ll give you your AGI instantly!

AGI (Adjusted Gross Income) Calculator

Gross Income ($): − Student Loan Interest Deduction ($): − HSA Contributions ($): − Traditional IRA Contributions ($): − Tuition & Fees Deduction ($):

🙋‍♀️ What Is AGI?

AGI stands for Adjusted Gross Income. It’s your total income for the year minus specific deductions, also known as “adjustments to income.”

The IRS uses your AGI to determine:

How much tax you owe
Whether you qualify for credits and deductions
Your eligibility for programs like Roth IRAs or education credits

💼 What Counts as Income?

Your gross income includes:

Wages, salaries, and tips
Business or freelance income
Investment income (interest, dividends, capital gains)
Rental income
Unemployment benefits
Social security (if taxable)

✂️ What Are “Adjustments”?

These are deductions that reduce your gross income to arrive at your AGI. Common adjustments include:

Traditional IRA contributions
Student loan interest
HSA (Health Savings Account) contributions
Tuition and fees deduction
Educator expenses
Self-employment taxes and health insurance

🧮 AGI Formula

Here’s the basic AGI formula:

AGI = Gross Income − Adjustments

✏️ AGI Example

Let’s say your gross income is $80,000 and you had:

$2,000 in student loan interest
$3,000 in HSA contributions

Then your AGI would be:

AGI = 80,000 − (2,000 + 3,000) = $75,000

🔍 Where to Find AGI on Your Tax Return

If you’ve already filed taxes, your AGI can be found on:

Form 1040, Line 11

💡 Why AGI Matters

AGI is the foundation of your tax return. It affects:

How much tax you owe
Eligibility for deductions and credits
Whether you can contribute to a Roth IRA
Qualification for income-based repayment plans for student loans

🏁 Final Thoughts

Understanding your Adjusted Gross Income is key to making smart tax decisions. With a few simple numbers, you can estimate your AGI and prepare for filing season like a pro.