What is adjusted gross income (AGI)?

Your adjusted gross income (AGI) is your total (gross) income from all sources minus certain adjustments. Your modified adjusted gross income (MAGI) is your adjusted gross income with certain deductions added back. You may need your AGI to: Start with your total (gross) income from all sources.

What income is included in AGI?

Almost all forms of income – except municipal bond interest – are factored into the AGI. There is also a long list of exclusions to the AGI. Those are items that can be deducted to lower a person’s adjusted gross income. Both income and exclusions are spelled out on the Schedule 1 tax form. Why Is AGI Important?

How does AGI calculate gross income?

Gross income is the sum of all the money you earn in a year, which may include wages, dividends, capital gains, interest income, royalties, rental income, and retirement distributions, before tax or deductions. AGI makes certain adjustments to your gross income to reach the figure on which your tax liability will be calculated.