AGI Calculator
Work out your Adjusted Gross Income — the figure on IRS Form 1040 Line 11 — from your wages, other taxable income, IRA and HSA contributions, student loan interest and other above-the-line adjustments.
Adjusted Gross Income (AGI)
£64,350.00
- Total income (Form 1040 Line 9)
- £75,500.00
- IRA deduction
- £6,000.00
- HSA deduction
- £3,650.00
- Student loan interest deduction
- £1,500.00
- Other above-the-line adjustments
- £0.00
- Total adjustments (Form 1040 Line 10)
- £11,150.00
AGI = total income − above-the-line adjustments. Total income $75,500 less $11,150 of Schedule 1 Part II adjustments gives an AGI of $64,350. AGI is the figure on Form 1040 Line 11 — the basis for many phase-outs (Roth IRA eligibility, student loan deduction, IRA deductibility when covered by a workplace plan), the Saver's Credit, the medical expense floor, and most state income tax starting points.
How to use this calculator
Enter the figure in Box 1 of your W-2 (wages), your other taxable income (interest, dividends, capital gains, retirement distributions, business income — anything on Lines 2–7 of Form 1040 plus Schedule 1 Part I), and then the above-the-line adjustments you can claim on Schedule 1 Part II. The most common adjustments — Traditional IRA deduction, HSA deduction, student loan interest — each have their own line so the 2025 statutory caps are applied automatically. Anything else (half of self-employment tax, SEP-IRA, self-employed health insurance, educator expenses) goes in the "other adjustments" catch-all. The headline result is your AGI.
How the calculation works
AGI is defined by IRC §62 as gross income minus a specific list of "above-the-line" deductions. On the 2024 Form 1040 those flow into Line 9 (total income) and Line 10 (adjustments), with Line 11 = Line 9 − Line 10 = AGI. The calculator caps the inputs that have statutory limits: Traditional IRA at $8,000 (the §219(b) cap including the 50+ catch-up), HSA at $9,550 (the Rev. Proc. 2024-25 family limit plus the 55+ catch-up), and student loan interest at the $2,500 §221 cap. Phase-outs based on MAGI — Roth IRA contribution limits, deductible IRA when covered by a workplace plan, the §221 student loan deduction itself — are not applied because they depend on AGI being computed first; the result here is the unadjusted AGI you would then test against those phase-outs.
Worked example
A single filer earns $75,000 in W-2 wages (Box 1) and $500 of bank interest, giving total income of $75,500. They contributed $6,000 to a Traditional IRA, $3,650 to an HSA (outside payroll), and paid $1,500 of student loan interest. Total above-the-line adjustments are $6,000 + $3,650 + $1,500 = $11,150. AGI = $75,500 − $11,150 = $64,350. This $64,350 is what they enter on Form 1040 Line 11, and it is what every downstream phase-out (Saver's Credit, Roth IRA contribution limits, medical-expense floor, most state income tax starting points) is keyed off — not the gross $75,500.
Frequently asked questions
What is the difference between gross income, AGI and taxable income?
Gross income is the broadest measure — all income from all sources before any tax deductions, including amounts excluded from W-2 Box 1 like pre-tax 401(k) contributions. Total income on Form 1040 Line 9 is gross income minus those Code-excluded items, so it is already lower than true gross. AGI (Line 11) subtracts the §62 "above-the-line" adjustments — IRA deduction, HSA deduction, student loan interest, half of self-employment tax, etc. Taxable income (Line 15) goes one step further and subtracts either the standard deduction or itemised deductions plus the QBI deduction. AGI is what most phase-outs and credits are keyed to; taxable income is what the bracket-by-bracket tax tables apply to.
What is MAGI and how is it different from AGI?
Modified Adjusted Gross Income (MAGI) is AGI with a handful of items added back. The exact add-backs depend on the rule you are testing — Roth IRA contribution eligibility adds back the Traditional IRA deduction and student loan interest deduction; Premium Tax Credit eligibility adds back tax-exempt interest and non-taxable Social Security; the §221 student loan deduction phase-out adds back the student loan deduction itself. There is no single MAGI on the tax return; it is computed per-purpose. For most filers MAGI is within a few hundred dollars of AGI, but cross-check the specific rule before assuming they are equal.
Are pre-tax 401(k) or 403(b) contributions an "adjustment" to income?
No — and double-counting them is the most common AGI mistake. Pre-tax workplace retirement contributions are already excluded from W-2 Box 1 wages (they are an exclusion from gross income under §402(g), not a §62 adjustment). If you enter your W-2 Box 1 figure as wages, you have already deducted those contributions. The same applies to Section 125 cafeteria-plan items — pre-tax health insurance, FSA, HSA payroll deductions, transit/parking — all already excluded from Box 1. Traditional IRA contributions, by contrast, are made with after-tax money and *are* an above-the-line adjustment on Schedule 1 line 20.
How does the IRA deduction phase out if I am covered by a workplace plan?
The Traditional IRA deduction is phased out by your filing status and whether you (or your spouse) are an "active participant" in a workplace retirement plan. For 2025, an active participant filing single phases out between $79,000 and $89,000 MAGI; married filing jointly is $126,000–$146,000 if the contributing spouse is covered, or $236,000–$246,000 if only the non-contributing spouse is covered (IRS Notice 2024-80). This calculator does not apply the phase-out — it uses the full $8,000 cap — because the phase-out depends on MAGI, which is itself derived from AGI. Cross-check the IRA Deduction Worksheet in the Form 1040 instructions once you have your AGI.
Where does Social Security fit in AGI?
Only the taxable portion of Social Security benefits is included in total income (Form 1040 Line 6b), not the full benefit (Line 6a). For 2025, up to 85% of benefits can be taxable depending on "combined income" — AGI excluding Social Security, plus tax-exempt interest, plus half of Social Security benefits. If combined income exceeds $34,000 single / $44,000 joint, up to 85% is taxable; between $25,000–$34,000 single / $32,000–$44,000 joint, up to 50% is taxable; below those thresholds, none of it is taxable. Enter the taxable portion (from the Social Security Benefits Worksheet) under "other taxable income".
Why does AGI matter for state taxes?
Most US states with an income tax use federal AGI as the starting point on the state return — line 1 of the state form is literally "federal AGI from Form 1040 Line 11". The state then adds and subtracts its own modifications (state-tax-exempt municipal bond interest, retirement income exclusions, etc.) before applying state-specific deductions and brackets. A handful of states (Pennsylvania, New Jersey, Alabama) compute taxable income independently rather than from federal AGI, and nine states (Florida, Texas, Washington, Nevada, South Dakota, Wyoming, Alaska, Tennessee, New Hampshire) have no broad-based state income tax. Even in the latter group, AGI still drives federal tax and any federal-AGI-keyed benefits.