AGI Calculator — Adjusted Gross Income (US 2025)

Formula

How this is calculated

Adjusted Gross Income is calculated in two steps. First, add every taxable income source: wages and salaries, net self-employment or business income, interest, dividends, rental income, alimony received under pre-2019 agreements, capital gains, and any other federally taxable item. That total is your gross income.

Second, subtract "above-the-line" deductions — adjustments you claim on Schedule 1 that reduce gross income before you reach the standard or itemised deduction. For the 2025 tax year these include student loan interest (capped at $2,500, subject to a phase-out), deductible traditional IRA contributions (up to $7,000, or $8,000 if you are 50 or older — subject to income and workplace-plan limits), Health Savings Account contributions (up to $4,300 for self-only or $8,550 for family coverage), one-half of self-employment tax, alimony paid under pre-2019 agreements, educator expenses, and others. The 2025 limits shown are editable estimates — verify final figures with IRS Publication 590-A and irs.gov before filing.

AGI determines eligibility for many tax benefits: the Roth IRA contribution phase-out, the student loan interest phase-out, the medical expense 7.5%-of-AGI floor, the net investment income tax threshold, and whether you can deduct IRA contributions at all if covered by a workplace plan.