๐งฎ AGI Calculator
Adjusted gross income: total income minus above-the-line adjustments.
Adjusted gross income (Form 1040, line 11)
Estimates for planning only, not financial advice.
Adjusted gross income is total income minus above-the-line adjustments, and it is the most referenced number in the tax code. Wages of $92,000 plus $3,000 of other income, minus $4,000 in HSA contributions, $2,500 in IRA contributions, and $2,000 of student loan interest, gives AGI of $86,500. Everything downstream, the standard deduction, tax brackets, credit phaseouts, uses this number as its starting point.
How to Use This Calculator
Enter total income by source and above-the-line adjustments from Schedule 1. The calculator totals income, totals adjustments, and produces AGI, plus what your taxable income would be after the 2026 standard deduction for context.
Enter wages and other income: interest, dividends, business income, capital gains, rentals. Gross amounts, before any deductions.
Enter above-the-line adjustments: HSA, deductible IRA, student loan interest (capped at $2,500), educator expenses, self-employed health premiums, half of SE tax.
Read AGI and the estimated taxable income after the standard deduction. Use AGI to check credit and deduction phaseouts before you file. For the full tax computation, continue to our income tax calculator.
The Formula
The order is the lesson. Adjustments come off first and help everyone; the standard deduction comes off second. A $4,000 HSA contribution lowers AGI for every filer, while $4,000 of mortgage interest only helps itemizers. That is why tax planners chase above-the-line items first: they are the only deductions with no itemizing requirement and the only ones that improve every AGI-linked limit simultaneously.
Worked Example: $86,500 AGI
Wages: $92,000. Bank interest: $3,000. Total income: $95,000. Adjustments: $4,000 HSA + $2,500 traditional IRA + $2,000 student loan interest = $8,500. AGI = $95,000 - $8,500 = $86,500. With the 2026 single standard deduction, taxable income lands around $86,500 minus the deduction, and every one of the $8,500 in adjustments saved tax at the filer's marginal rate.
The second-order effects matter more than the direct saving. That $86,500 AGI, versus $95,000 without adjustments, keeps the filer further from the student loan interest phaseout and any AGI-linked credit cliffs. At a 22 percent marginal rate, the $8,500 of adjustments saves $1,870 in tax directly; the AGI reduction itself can be worth more if it preserves a credit. Always evaluate adjustments on both levels.
What Lowers AGI (and What Does Not)
| Move | Lowers AGI? | Note |
|---|---|---|
| HSA contributions | Yes | 2026: $4,400 single / $8,750 family |
| Traditional 401(k) / IRA | Yes | Pre-tax contributions |
| Student loan interest | Yes, to $2,500 | Phaseout at higher incomes |
| Mortgage interest | No | Below the line; helps only itemizers |
| Charitable giving | No | Below the line; itemizers only |
| Roth IRA contributions | No | After-tax; helps later, not now |
The table explains a common confusion: two $5,000 outflows can have opposite tax effects depending on which side of the line they fall. Money toward the HSA shrinks AGI; money toward charity does not (unless you itemize). Neither is "better" in absolute terms, but only one moves every AGI-linked threshold in your favor.
AGI Planning Through the Year
AGI is one of the few tax numbers you can still move in December. Max the HSA, top up the 401(k), harvest capital losses against gains, and time bonuses and invoices across the year boundary. Self-employed filers have extra levers: the deductible half of self-employment tax, the health insurance deduction, and retirement plan contributions all come off above the line.
Watch the cliffs, not just the rates. Credits and surcharges phase out at specific MAGI thresholds, and a few thousand dollars of AGI can cost or save thousands in credits or Medicare premiums. If you are near a threshold, December moves like HSA funding and loss harvesting are worth real money. Our income tax calculator turns the AGI into actual tax, and the IRA calculator models the long-run payoff of the deductible contributions that got you there.
AGI Planning: Moving the Number on Purpose
Because so many thresholds key off AGI, timing income and adjustments is legitimate tax planning. Maxing a 401(k) and an HSA ($4,400 single / $8,750 family for 2026) directly lowers AGI, and the effects cascade: lower AGI can preserve IRA deductibility, reduce Medicare IRMAA surcharges two years out, and keep ACA premium credits intact. Each of those can be worth more than the income tax saved.
Bunching works the other way for itemizers: doubling charitable gifts in one year to clear the standard deduction hurdle, then taking the standard deduction the next. And watch the cliffs: a $1,000 bonus that pushes MAGI over an ACA threshold can cost thousands in lost credits, making the bonus net negative. The lesson is that AGI is not just a line on the return; it is the control panel for a dozen other tax outcomes. Plan it in November, not April.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What is adjusted gross income (AGI)?
AGI is total income minus "above-the-line" adjustments: HSA contributions, traditional IRA contributions, student loan interest, educator expenses, and a few others. Wages of $92,000 plus $3,000 of interest, minus $8,500 in adjustments, gives AGI of $86,500. It is the number on Form 1040 line 11 and the gateway to almost every tax calculation.
How do you calculate AGI?
Add up all income: wages, business income, interest, dividends, capital gains, rental income, and the rest. Then subtract above-the-line adjustments from Schedule 1: HSA contributions, IRA deductions, student loan interest (up to $2,500), half of self-employment tax, and educator expenses. The result is AGI. Deductions like the standard deduction come after AGI, not before it.
Why does AGI matter so much?
Because tax law keys dozens of limits to it. IRA deduction eligibility, the student loan interest phaseout, the 7.5 percent medical expense floor, net investment income tax thresholds, and ACA premium credits all reference AGI or MAGI (modified AGI). A $1,000 HSA contribution that lowers AGI can open up benefits worth more than the tax on the $1,000 itself.
What is the difference between AGI and MAGI?
MAGI is AGI with certain items added back, and the add-backs differ by program. For IRA purposes, MAGI adds back student loan interest and foreign earned income exclusions; for Medicare premiums (IRMAA), it adds back tax-exempt interest. Same starting point, different adjustments. When a rule says MAGI, check that program's specific definition.
Do above-the-line deductions require itemizing?
No, and that is their power. Above-the-line adjustments reduce AGI whether you take the standard deduction or itemize. Below-the-line deductions (mortgage interest, SALT, charity) only help if you itemize. A $4,000 HSA contribution helps every filer; $4,000 of charity only helps itemizers.
What are the most common above-the-line adjustments?
HSA contributions, traditional IRA contributions (if eligible), student loan interest up to $2,500, the deductible half of self-employment tax, educator expenses up to $300, health insurance premiums for the self-employed, and alimony paid under pre-2019 agreements. Most W-2 workers without an HSA or IRA have few adjustments, which is why their AGI sits close to total income.
Is AGI before or after the standard deduction?
Before. The order is: total income, minus adjustments, equals AGI; then minus the standard or itemized deduction, equals taxable income. Confusing the order overstates the tax benefit of adjustments and understates the role of the standard deduction. This calculator stops at AGI; our <a href="/finance/income-tax-calculator">income tax calculator</a> continues to taxable income and tax.
Can AGI be negative?
Yes. Business losses, capital losses (up to $3,000 against ordinary income), and rental losses can push total income below zero, and adjustments deepen it. Negative AGI usually means loss carryforwards and limited current-year benefit, but it can also trigger credits and zero out IRMAA surcharges.
How can I lower my AGI?
Max above-the-line adjustments: HSA contributions (up to $4,400 single / $8,750 family for 2026), traditional IRA or 401(k) contributions, and harvesting capital losses. Timing matters too: deferring a bonus to January or accelerating deductible expenses into December shifts AGI between years. Every strategy here also builds wealth, which is the pleasant part.
Where do I find my AGI?
Form 1040, line 11, on your filed return. The IRS also uses prior-year AGI as an identity check for e-filing, so keep the number handy at tax time. If you need a transcript, the IRS "Get Transcript" tool shows it free.