Adjusted gross income (AGI) is your total income from all sources for the year minus a specific set of adjustments to income. It is a single number, reported on Form 1040 line 11, that the rest of your federal tax return is built on: AGI sets the base for your deduction and decides which credits and surcharges you qualify for.
Adjusted gross income is total income (Form 1040 line 9) minus adjustments to income (line 10), producing AGI on line 11. Common adjustments include deductible traditional IRA and HSA contributions, student loan interest and one-half of self-employment tax. AGI is figured before the standard or itemized deduction. For 2026 the standard deduction is $16,100 single and $32,200 married filing jointly (Source: IRS Rev. Proc. 2025-32).
What is adjusted gross income?
Adjusted gross income is your gross income from all sources reduced by the adjustments to income listed on Schedule 1, Part II of Form 1040. On the 1040, total income is line 9, adjustments are line 10, and AGI is line 11. The tax code uses AGI to decide how much income is taxable and which credits and deductions you qualify for (Source: IRS, Modified adjusted gross income).
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What counts as gross income?
Gross income is income from nearly every source you receive during the year, counted before any adjustments are subtracted. It is the larger, starting figure that feeds Form 1040 line 9, total income, and it sits one step ahead of AGI in the calculation (Source: IRS, Form 1040 instructions). Common sources include:
- Wages, salary and tips
- Interest and dividends
- Capital gains from selling investments
- Business and self-employment income
- Rental and royalty income
- Retirement account distributions and pensions
- The taxable portion of Social Security benefits
- Unemployment compensation
- Alimony received under pre-2019 divorce agreements
A traditional-to-Roth conversion is includible in gross income in the year of the distribution, so it raises income and therefore AGI (Source: IRS Publication 590-A). Retirees weighing that step can review how a Roth conversion adds taxable income.
What are the adjustments that reduce gross income to AGI?
Adjustments to income, often called above-the-line deductions, are subtracted from gross income to reach AGI. They are reported on Schedule 1, Part II of Form 1040, and you can claim them whether or not you itemize (Source: IRS, Schedule 1 instructions). Common 2026 adjustments include:
- Educator expenses
- Health savings account (HSA) deduction
- Deductible traditional IRA contributions
- Student loan interest deduction
- Self-employed SEP, SIMPLE and qualified plan contributions
- Self-employed health insurance deduction
- Deductible part of self-employment tax (one-half of SE tax)
- Penalty on early withdrawal of savings
- Moving expenses for members of the Armed Forces
- Alimony paid under pre-2019 divorce agreements
- Archer MSA deduction
One 2026 point trips people up: the OBBBA (P.L. 119-21) deductions for qualified tips (up to $25,000), qualified overtime (up to $12,500 single, $25,000 joint) and the $6,000 per person senior deduction are claimed on the new Schedule 1-A and flow to Form 1040 line 13b, below the AGI line. For tax years 2025 through 2028 they lower taxable income, but they do not reduce AGI or MAGI (Source: IRS, Schedule 1-A instructions).
How do you calculate AGI?
You calculate AGI on Form 1040 with one formula: total income on line 9 minus adjustments to income on line 10 equals adjusted gross income on line 11. Your adjustments carry over from Schedule 1, Part II, and you subtract them whether or not you itemize. The three steps below walk through it (Source: IRS, Form 1040 instructions).
- Add all taxable income on line 9 (wages, interest, dividends, capital gains, business income and retirement distributions).
- Add your adjustments to income on line 10, carried from Schedule 1, Part II.
- Subtract line 10 from line 9. The result is your AGI on line 11.
What is an example of adjusted gross income?
A worked example shows how gross income becomes AGI and then taxable income. The figures below are illustrative for a single filer in 2026; the standard deduction and IRA figures are the verified 2026 amounts (Source: IRS Rev. Proc. 2025-32 and Notice 2025-67).
- Add up total income: $95,000 wages + $1,200 interest + $2,300 dividends + $4,000 capital gains + $8,000 net self-employment income = $110,500 total income.
- Subtract adjustments: $7,500 deductible traditional IRA contribution + $2,500 student loan interest + $565 one-half of self-employment tax = $10,565 in adjustments.
- Total income minus adjustments = $99,935 AGI (Form 1040, line 11).
- Subtract the 2026 single standard deduction of $16,100 = $83,835 taxable income.
Taxable income, not AGI, is what your tax brackets are applied to; AGI is the intermediate stop and the number most eligibility tests read.
AGI vs. gross income vs. taxable income vs. MAGI
These four terms mark different points in the same calculation, moving from the broadest income figure down to the number that is actually taxed. Gross income comes first, AGI subtracts Schedule 1 adjustments, taxable income subtracts your deduction, and MAGI adds certain items back for specific tests. The table compares them (Source: IRS, Form 1040 instructions).
| Term | What it is | Where it lives |
|---|---|---|
| Gross income | All income before adjustments | Feeds Form 1040, line 9 (total income) |
| Adjusted gross income (AGI) | Gross income minus Schedule 1 adjustments | Form 1040, line 11 |
| Taxable income | AGI minus the standard or itemized deduction (and any line 13b deductions) | Form 1040, line 15 |
| Modified AGI (MAGI) | AGI with certain items added back | Not printed on the 1040; computed on IRS worksheets |
What is MAGI, and why is it different for each purpose?
Modified adjusted gross income is your AGI with certain amounts added back, and it is always equal to or greater than your AGI. What gets added back depends entirely on the provision being tested, so there is no single MAGI number and MAGI is not printed on Form 1040 (Source: IRS, Modified adjusted gross income). For the full breakdown, see our companion guide to modified adjusted gross income.
In practice, several distinct MAGIs use different add-backs, as the table shows.
| MAGI purpose | Starts with AGI, then adds | Primary source |
|---|---|---|
| ACA premium tax credit | Tax-exempt interest, excluded foreign earned income, and nontaxable Social Security benefits | IRS Form 8962 instructions |
| Roth IRA contribution limit | Certain deductions added back per Worksheet 2-1 (including the traditional IRA deduction) | IRS Pub 590-A |
| Net investment income tax (NIIT) | Foreign earned income exclusion (net of related deductions) | IRS Topic 559 |
| Medicare IRMAA | Tax-exempt interest | SSA POMS HI 01101.010/.020 |
Because the add-backs differ by provision, one MAGI can gate a Roth contribution while a different MAGI sets your Medicare premium.
Why does your AGI matter?
AGI and its MAGI variants act as the on/off switch and sliding scale for many credits, deductions and surcharges. As income rises, benefits phase out and surcharges phase in, so AGI often drives more of your tax result than the brackets alone (Source: IRS, Modified adjusted gross income).
Provisions tied to AGI or MAGI include the Child Tax Credit, the Earned Income Tax Credit (2026 maximum of $8,231 for three or more children), the Child and Dependent Care Credit, and IRA deductibility. For 2026, the traditional IRA deduction phases out over a MAGI of $81,000 to $91,000 for a single filer covered by a workplace plan, and Roth IRA contributions phase out over $153,000 to $168,000 for single and head-of-household filers (Source: IRS Notice 2025-67).
Higher up, MAGI drives the 3.8% net investment income tax above fixed thresholds of $200,000 (single) and $250,000 (married filing jointly), and it sets Medicare IRMAA surcharges, which for 2026 begin above a MAGI of $109,000 for individuals and $218,000 for joint filers (Source: IRS Topic 559; SSA POMS HI 01101.020). Because a Roth conversion adds ordinary income in the conversion year, it can raise AGI and MAGI enough to affect credit eligibility or, through the two-year IRMAA look-back, future Medicare premiums. Investors often model this before deciding how much to convert to a Roth and how the extra income meets the net investment income tax.
The new OBBBA line 13b deductions for tips, overtime and seniors sit below AGI, so they cut taxable income without cutting the MAGI that drives IRMAA and NIIT. Retirees also plan around required minimum distributions, which add to AGI once they begin and cannot be converted.
How do you find your prior-year AGI for e-filing?
Tax software and the IRS often ask for your prior-year AGI to verify your identity when you e-file, matching it against what the IRS already has on record. It is on line 11 of last year’s Form 1040, and the two scenarios below cover where to look if you cannot find that return (Source: IRS, Form 1040 instructions).
- You filed last year but cannot find the return. Sign in to your IRS Individual Online Account or request a tax return transcript, both of which show the AGI reported.
- You did not file a return last year. IRS rules generally allow you to enter $0 as the prior-year AGI for identity verification when no prior return exists.
Your federal AGI and state AGI can differ: many states start from federal AGI, then add or subtract state-specific items, so your state AGI may not match line 11 of your federal 1040.
Frequently asked questions
How do I calculate my adjusted gross income?
Add all of your income for the year (wages, interest, dividends, capital gains, business income and retirement distributions), then subtract the adjustments on Schedule 1, Part II of Form 1040, such as deductible IRA and HSA contributions, student loan interest and one-half of self-employment tax. The result is your AGI on line 11 (Source: IRS, Form 1040 instructions).
Is adjusted gross income the same as taxable income?
No. AGI comes first; taxable income comes later. You reach taxable income by subtracting the standard or itemized deduction from AGI. For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly, so taxable income is usually smaller than AGI (Source: IRS Rev. Proc. 2025-32).
Where do I find my AGI on my 1040?
Your AGI is on Form 1040, line 11. It is the last line of the income section, calculated as total income (line 9) minus adjustments to income (line 10). Line 11 has been the AGI line on the 2024, 2025 and 2026 Form 1040, so look there rather than on any wage statement (Source: IRS, Form 1040 instructions).
Is AGI before or after the standard deduction?
AGI is before the standard deduction. The standard deduction is subtracted from AGI to produce taxable income, so it comes one step later in the calculation. For 2026, subtracting the standard deduction (for example, $16,100 for a single filer) from AGI gives your taxable income, the figure your tax brackets are then applied to (Source: IRS Rev. Proc. 2025-32).
What is the difference between gross income and adjusted gross income?
Gross income is all of your income before any adjustments. Adjusted gross income is that same total after subtracting above-the-line adjustments on Schedule 1, Part II, such as deductible retirement contributions and student loan interest. AGI is therefore equal to or less than gross income and appears on Form 1040, line 11 (Source: IRS, Modified adjusted gross income).
Does adjusted gross income include Social Security?
AGI includes only the taxable portion of Social Security benefits, not the full benefit. Depending on your other income, some, all, or none of your benefits may be taxable and flow into AGI, while any nontaxable portion stays out. For certain MAGI tests, such as the ACA premium tax credit, nontaxable benefits are added back (Source: IRS Form 8962 instructions).
How do I find my AGI from last year?
Your prior-year AGI is on line 11 of last year’s Form 1040. If you do not have the return, you can view it through an IRS Individual Online Account or request a tax return transcript. If you did not file a return last year, IRS rules generally allow you to enter $0 as your prior-year AGI for e-file identity verification (Source: IRS, Form 1040 instructions).
Is my AGI on my W-2?
No. Your AGI is not on your W-2. A W-2 reports wages and withholding from one employer, not your full income picture or your adjustments to income. AGI is calculated only on Form 1040 and printed on line 11, so a W-2 box will never show it (Source: IRS, Form 1040 instructions).
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