What AGI means
Adjusted gross income (AGI) is your total income for the year minus a short list of "above-the-line" adjustments. It's the number the IRS uses to decide which deductions and credits you qualify for, and it's the starting point for taxable income. On the 2025 Form 1040 it's on line 11a (repeated on line 11b); on 2024 and earlier returns it's line 11.
How it's calculated
AGI − standard or itemized deduction (line 12e) − other deductions (line 13) = taxable income (line 15)
Total income includes wages, taxable interest and dividends, business profit, capital gains (a net capital loss counts only up to $3,000, or $1,500 married filing separately), retirement distributions, unemployment, taxable Social Security and other income. The adjustments are the items in Part II of Schedule 1:
| Schedule 1 line | Adjustment |
|---|---|
| 11 | Educator expenses |
| 13 | Health savings account (HSA) deduction |
| 15 | Deductible part of self-employment tax |
| 16 | Self-employed SEP, SIMPLE and qualified plans |
| 17 | Self-employed health insurance |
| 18 | Penalty on early withdrawal of savings |
| 19a | Alimony paid (older divorce agreements) |
| 20 | IRA deduction |
| 21 | Student loan interest deduction |
The student loan interest deduction is the only adjustment this calculator limits for you: at most $2,500, reduced when income is between $85,000 and $100,000 ($175,000 and $205,000 joint in 2026; $170,000 and $200,000 in 2025), and not allowed when married filing separately. Use the self-employment tax calculator to find the deductible half of SE tax.
Worked example
A single filer in 2026 earned $60,000 in wages and $500 of interest, put $2,000 into an HSA on their own, deducted $3,000 for an IRA and paid $1,200 of student loan interest. Total income is $60,500. Adjustments are $2,000 + $3,000 + $1,200 = $6,200, so AGI is $54,300. After the $16,100 standard deduction, taxable income is $38,200.
Limitations
- Contribution limits for HSAs, IRAs and retirement plans aren't checked. Enter the deductible amount.
- The IRA deduction can be limited if you or your spouse have a workplace plan; enter the deductible part.
- The qualified business income deduction (line 13a) and the 2025–2028 deductions for tips, overtime and car loan interest (Schedule 1-A) aren't included in taxable income here, except the senior deduction.
- Taxable Social Security has its own worksheet; enter the taxable part under other income.
Sources
- 2025 Form 1040 – lines 9, 10, 11a, 12e, 13a/13b, 15; 2025 standard deduction
- 2025 Schedule 1 (Form 1040) – Part II adjustments, lines 11–26
- IRS Topic 456, Student loan interest deduction – $2,500 and no deduction filing separately
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments) – 2026 phase-out $85,000/$175,000, standard deduction
- IRS Rev. Proc. 2024-40 (2025 inflation adjustments) – 2025 phase-out $85,000/$170,000
- IRS Topic 409, Capital gains and losses – $3,000 / $1,500 capital loss limit
- IRS: Validating your electronically filed tax return – where to find last year's AGI