How to Calculate Your Adjusted Gross Income — and What It Means

Your eligibility for certain money-saving tax breaks depends on your adjusted gross income.

Red letters AGI for adjusted gross income on a black background
(Image credit: Getty Images)

When it’s time to calculate your tax bill, knowing your adjusted gross income (AGI) is a crucial first step. If you file your tax return online (or have your tax preparer do it), you’ll need your AGI from the previous tax year to prove your identity to the IRS. In addition, your AGI determines your eligibility for a range of tax breaks that could lower your tax bill.

Calculate adjusted gross income

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Ella Vincent
Staff Writer

Ella Vincent is a personal finance writer who has written about credit, retirement, and employment issues. She has previously written for Motley Fool and Yahoo Finance. She enjoys going to concerts in her native Chicago and watching basketball.