Adjusted Gross Income (AGI)

Adjusted Gross Income (AGI) is a key measure of your total income after certain deductions, but before standard or itemized deductions are applied for your tax return. It includes wages, dividends, capital gains, and other income sources, minus specific adjustments like retirement plan contributions or student loan interest. AGI serves as the starting point for calculating your taxable income and determines your eligibility for many tax credits and deductions. Essentially, it reflects your income amount that the IRS uses to assess your tax liability more accurately.