Calculating your AGI is easy to do. You simply add all of your forms of income together and then subtract tax deductions from that total to arrive at your AGI. AGI = gross income - adjustments to income.
The types of income you would add together would be any of the following:
- W-2 Wages and tips
- Unemployment Payments
- Business/SE/Farm Income and Losses
- Taxable Interest and Dividends
- Earnings from royalties, partnerships, S corporations, trusts, and license payments
- Capital Gains and Losses
- Rental/Schedule K1 Income and Losses
- Taxable SSI benefits
- Taxable Amounts from Pensions or IRAs
- Taxable State Refunds
- Alimony that you may receive
- Jury duty fees
- Prizes from gambling, contests, lottery and awards
- Any other income not tax-exempt
Remember that not all income is taxable. A few common examples of income that is non-taxable would be child support or foster care earnings, inheritance, scholarships or fellowship grants, payments for the sale of your primary residence, disability payments, and money from rolling over an IRA or retirement plan, among others.
The tax deductions that you would now subtract from the above total could include any of the following:
- IRA or self-employed retirement plan contributions
- Moving expenses for active duty military members being ordered to move
- Alimony paid out (for divorces finalized prior to 2019)
- Student loan interest (capped at $2,500. Single filer are not eligible for the deduction when total income is greater than $80,000 or $165,000 for married filing jointly)
- Tuition and fees
- School tuition and fees (capped at $2,500, with 100% of the first $2,000, and 25% of the next $2,000 eligible as a deduction)
- Health savings account deduction
- Attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination against you
- Qualified educator expenses (capped at $250)
- One-half of self-employment tax (the employer portion)
- Self-employed SEP, SIMPLE and qualified plans
- Self-employed health insurance contribution
- Self-employed health insurance deduction
- Reforestation expenses and amortization of timber property (up to $10,000)
- Chaplain contributions to 403(b) plans
- Contributions to 501(c)(18)(D) employer-funded pension plans
- Other deductions
I’m Kristin, the PWCPA PC Customer Success Specialist. For more information about this topic, or any other, you can always reach me through our customer ticketing system.
