Your adjusted gross income, or AGI, is the basis for many things, like calculating your tax bill when you file your income tax return. It also decides how much you can claim for certain tax credits and deductions.
For example, you can deduct up to 10% of your AGI for unreimbursed medical expenses and up to 60% of your AGI for charitable donations. In some cases, your AGI could even be used to determine your eligibility for benefits issued by the U.S. government.
Where to find your AGI on your tax return
You can find your current year AGI on Line 11 of your 1040, 1040-R, or 1040-SR. It’s important to know your AGI because it helps calculate your tax bill and determine your eligibility for certain credits and deductions. Plus, if you’re filing your tax return online, you will need to access your prior year AGI to verify your identity.
Your AGI changes each year according to the income adjustments you claim. These include student loan interest you may have paid, retirement contributions, health insurance premiums and more.
Can I find my AGI on my W-2?
You won’t see your AGI listed on your W-2 or your year-end pay stub. These documents only report the gross income you earned from that specific job, without any adjustments.
Your AGI includes income not shown on a W-2 or pay stub, such as freelance earnings, investment income, refunds, unemployment benefits, and alimony received. It also factors in eligible deductions that reduce your gross income, like moving expenses, alimony you’ve paid, or certain education-related deductions. You can use Form 1040 to calculate your AGI for the current tax year.
How to find your prior year AGI
The IRS uses your prior year AGI to verify your identity and confirm that you’re the one submitting the return. Having the correct AGI helps prevent delays or rejected filings. You can find your AGI for last year on page 1, line 11 of your Form 1040 or 1040-SR. If you filed with TaxSlayer, you can log in to your account to view this information.
When you return to TaxSlayer to file your tax return each year, your AGI is pulled forward and entered on to your current tax form.
How can I find my AGI if I don’t have my prior year return?
If you do not have last year’s tax return, you can get a copy of your transcript from the IRS. Start by visiting the IRS website. From there, you have two options:
- Use the Get Transcript Online tool to view your AGI.
- Use Get Transcript by Mail or call 800-908-9946 to request a Return Transcript. Allow 5 to 10 days for delivery. The IRS cannot share your AGI over the phone because it is sensitive information, and releasing it verbally would pose a security risk. Providing it only through official transcripts helps protect your identity and tax records.
If you didn’t file your taxes last year, use TaxSlayer to file a prior year return. The information you provide will be entered into the forms, and the calculations will be done for you.
If you didn’t file your taxes last year and need to, use TaxSlayer to file a prior year return. The information you provide will be entered into the forms, and the calculations will be done for you.
How to calculate your AGI
When you file with TaxSlayer, the calculation is done for you. This is one of the major benefits of filing your taxes online. If you file your return on paper, you will calculate your AGI using Form 1040.
To determine your AGI, follow these steps:
- Find your gross income.
- This includes anything you earned for the year, such as wages, dividends, capital gains, retirement distributions, and similar income. These amounts are added together on Form 1040.
- Apply the AGI formula:
- Gross income – Adjustments to income = Adjusted Gross Income (AGI)
- Subtract your adjustment to income. These may include:
- Educator expenses
- Health savings account deductions
- Unreimbursed moving expenses for military service members
- A portion of the self-employment tax
- Self-employed health insurance
- Penalties for early withdrawals from savings
- Alimony paid for pre-2019 divorces
- Student loan interest
- IRA contributions
Filing with TaxSlayer makes calculations like this as simple as entering your information. File fearlessly knowing your tax return is 100% accurate – start for free!
Adjustable gross income vs. taxable income
AGI and taxable income are related, but they’re not the same. Your AGI is your gross income minus certain adjustments, and it’s used to determine your eligibility for various deductions and credits. Taxable income is what’s left after you subtract the standard deduction or your itemized deductions from your AGI. In short, AGI helps determine what tax benefits you qualify for, while taxable income determines how much tax you actually owe.
What is an example of adjusted gross income?
Your AGI should almost always be lower than your gross income. It is never more than your gross income. To find your AGI, you will add up your income and subtract your adjustments to income. Here is an example:
Liane is an elementary school teacher. She works weekends as a barista. Her base salary from the school is $32,000 annually, and she gets $10,000 from her second job. Her gross income for the year is $42,000. $32,000 + $10,000 = $42,000 gross income.
Liane also has student loans; the interest she paid this year equals $1,320. Because she works as a teacher, she qualifies for the educator expense deduction worth $250. She can write off a total of $1,570 for adjustments to income.
When you file your taxes with TaxSlayer, calculations like this are done for you. Simply enter your income and expense information for the year and let the software do the work. Plus, you’ll never lose track of important data – like your AGI – because it’s all stored securely in your online account.
What happens if your AGI is incorrect?
It is possible for your prior year’s AGI to be incorrect, especially if the IRS made an adjustment to your return after you filed or if you’re looking at a draft or unfiled copy instead of the final version.
If your AGI is incorrect, the IRS will reject your return, giving you another opportunity to look closer at your return and correct any mistakes that were made. It is easy to file an amended tax return with TaxSlayer by following these simple steps:
- Gather Form 1040 to verify your AGI on line 11.
- Fill out Form 1040-X with your personal information, changes to amounts, and an explanation for the amendment.
- If AGI is your only amendment, you can submit your changes electronically. When you file an amended return with TaxSlayer, we’ll automatically fill out the columns based on the changes to your account.
Note: If you need to mail additional supporting documentation, you may opt to mail your amended return.
