Where do you find the agi on a 1040

Adjusted Gross Income is simply your total gross income minus specific deductions. Additionally, your Adjusted Gross Income is the starting point for calculating your taxes and determining your eligibility for certain tax credits and deductions that you can use to help you lower your overall tax bill.

What Is AGI?

Adjusted Gross Income, or AGI, starts with your gross income, and is then reduced by certain “above the line” deductions.  Some common examples of deductions that reduce adjusted gross income include 401(k) contributions, health savings account contributions and educator expenses.

 “So, What Is Adjusted Gross Income on Your W-2?”

The answer is – it’s not. However, we’ve heard this question before as taxpayers ask for help with their taxes. Let’s face it, tax terminology can get a little confusing. When it comes to talking about income, there are several terms that sound similar, but they have their own definitions and purposes. Understanding a bit more about these terms can help us better understand what Adjusted Gross Income is and what it isn’t.

• Gross Income – This includes all income received from all sources, and could include money, property, and the value of services received. Gross income is reduced by adjustments and deductions before taxes are calculated. Wages, tips, interest, dividends, rents and pension income are examples of sources that contribute to your gross income.
• Taxable Income – This is your AGI minus either the standard deduction or total of itemized deductions—whichever is greater and the qualified business income deduction if applicable. Your taxable income is what you’ll use to determine your tax bracket. Note, with changes from the Tax Cut and Jobs Act, personal and dependent exemptions, which may have lowered your taxable income, were eliminated from 2018 through 2025.
• Modified Adjusted Gross Income (MAGI) – This is your AGI plus a few adjustments added back in. Your Modified Adjusted Gross Income determines your eligibility for certain deductions, credits and retirement plans. Take note: there’s no fixed definition of MAGI as the adjustments vary, depending on the specific tax benefit.

Finding your prior-year adjusted gross income on your 1040

Your prior-year AGI can be used to validate your electronic return with the IRS. To locate your Adjusted Gross Income on Form 1040 from the previous year, you’ll need a copy of last year’s return. For 2020, you can find the amount listed on the following lines based on the form you used.

• If you filed Form 1040, your AGI will be listed on Line 11.
• If you filed Form 1040-NR, your AGI will be listed on Line 11.

How to find annual income

Sometimes when people ask about annual income, they may be thinking of their salary before or after taxes are taken out from their paychecks. You can find your annual income on your Form W-2 from your employer. If you’re looking for your AGI from last year, check out the next section. 

Need to know more about adjusted gross income?

Still have questions about Adjusted Gross Income? Our Tax Pros can help. They’re dedicated to knowing the nuances of taxes and can help you understand your return.

Make an Appointment to speak with a tax pro today.

Related Topics

Investments Wages Retirement income Real estate

Related Resources

Garage Sale Money and Capital Gains: What You Should Report to the IRS

Do capital gains apply to garage sale money? The answer depends on a number of factors. Learn more at H&R Block.

For Pro Golfers, Tough Taxes Are Par for the Course

Professional golfer taxes can be complicated and confusing. Learn more about tricky golfer tax issues like travel deductions and residency rules with H&R Block.

How Renting Out Your Extra Bedrooms Affects Your Taxes

Thinking about renting out a room in your home? Learn more about the potential tax implications with the experts at H&R Block.

How do I calculate taxable income?

Finding your taxable income is an important part of filing taxes. Learn how to calculate your taxable income with help from the experts at H&R Block.

Adjusted gross income, or AGI, is your gross income minus certain adjustments. The IRS uses this number as a basis for calculating your taxable income. AGI can also determine which deductions and credits you may qualify for.

How is adjusted gross income calculated?

Adjusted gross income is your gross income — which includes wages, dividends, alimony, capital gains, business income, retirement distributions and other income — minus certain payments you’ve made during the year, such as student loan interest or contributions to a traditional individual retirement account or a health savings account.

In general, the formula for calculating AGI is to determine your gross income. This includes income from:

• Certain business expenses.

• Deductible HSA contributions.

• Moving expenses for military.

• Deductible self-employment taxes.

• Contributions to retirement plans or health insurance for self-employed people.

• Penalties on early withdrawals of savings.

• Deductible IRA contributions.

• Deductible tuition and fees.

Tax software or your tax preparer will calculate your adjusted gross income as part of the process of preparing your tax return.

Where is AGI on a tax return?

You can find your adjusted gross income right on your IRS Form 1040. On your federal tax return, your AGI is usually on line 11 of your Form 1040.

The significance of adjusted gross income

Your AGI is often the starting point for calculating your tax bill. From there, you’ll make various adjustments and subtract your allowable deductions to find the amount on which you’ll pay tax: That's your taxable income. You’ll see the term “adjusted gross income (AGI)” repeated throughout your tax forms.

Your state tax return might also use your federal AGI as a starting point. If you file taxes online, your software will calculate your AGI.

What is your modified adjusted gross income (MAGI)?

According to the IRS, for most taxpayers, modified adjusted gross income, or MAGI, is simply adjusted gross income before subtracting deductible student loan interest.

If you’re filing Form 1040 and itemizing so that you can take certain deductions, you may have to calculate your MAGI. It can also be a baseline for determining the phaseout level of some credits and tax-saving strategies, and sometimes the formula for MAGI can depend on the type of tax benefit it applies to.