Adjusted Gross Income (AGI)
Your total income minus specific deductions like student loan interest and IRA contributions. It's the number that determines your eligibility for many tax breaks.
Full explanation
AGI is your gross income — wages, interest, dividends, business income, capital gains, and other income — minus specific adjustments (also called 'above-the-line' deductions). These adjustments include contributions to traditional IRAs, student loan interest, self-employment tax deduction, and health savings account contributions. Your AGI appears on Line 11 of Form 1040. Many tax credits and deductions phase out based on AGI, making it one of the most important numbers on your return.
Source: IRS Publication 17 — Your Federal Income Tax
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“How does adjusted gross incomeaffect my taxes?”Tax education only. Source: IRS Publication 17 — Your Federal Income Tax.