Adjusted Gross Income

Adjusted Gross Income (AGI) is the value from line 37 of Form 1040, the US Individual Income Tax Form. It is the sum of income from all sources includings wages, interest, dividends, capital gains, IRA distributions, pensions, annuities, rental income, business income, unemployment compensation, and Social Security payments, less allowed adjustments such as alimony paid, IRA deduction, moving expenses, HSA, etc. (but excluding itemized deductions).

Expanded Definition

AGI is the number on which income taxes are calculated using the standard deduction or from which itemized deductions are subtracted. With some additional adjustments, it is the value used to determine your eligibility for participation in a Roth IRA or deductibility of IRA contributions.

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Related Terms

• Annuity
• Business income
• Capital gain
• Dividend
• Form 1040
• HSA
• Income Tax
• IRA
• IRA deduction
• IRA distribution
• Itemized deduction
• Moving expense
• Pension
• Rental income
• Roth IRA
• Social Security payments
• Standard deduction
• Unemployment compensation
• Wages

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