1. What is Adjusted Gross Income?

Adjusted Gross Income (AGI) is your total gross income minus specific adjustments. It's a key figure on your tax return that determines your eligibility for certain tax credits and deductions.

2. How AGI is Calculated

The basic formula for calculating AGI is:

Where:

• Gross Income — Includes wages, dividends, capital gains, business income, retirement distributions, and other income
• Adjustments — May include educator expenses, student loan interest, alimony payments (for pre-2019 divorces), contributions to retirement accounts, and other eligible deductions

Note: For 2024, some adjustment amounts may have changed from previous years.

3. Importance of AGI

Details: Your AGI affects:

• Eligibility for many tax deductions and credits
• Your ability to contribute to Roth IRAs
• Calculation of taxable income
• Certain government benefits and financial aid programs

4. Using the Calculator

Instructions:

1. Enter your total gross income for 2024
2. Enter the sum of all eligible adjustments for 2024
3. Click "Calculate" to get your estimated AGI

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross income and AGI?
A: Gross income is your total income before any deductions. AGI is gross income minus specific adjustments.

Q2: What are common adjustments to income?
A: Common 2024 adjustments include educator expenses, student loan interest, HSA contributions, and traditional IRA contributions.

Q3: Is AGI the same as taxable income?
A: No, taxable income is your AGI minus either the standard deduction or itemized deductions.

Q4: Where can I find my AGI from last year?
A: Your AGI from 2023 appears on line 11 of your Form 1040.

Q5: Does this calculator account for all possible adjustments?
A: No, this provides a basic calculation. Consult a tax professional for complex situations.