AGI Calculator
Calculate your Adjusted Gross Income (Form 1040, Line 11) for 2025-2026. AGI determines your eligibility for tax credits, deductions, and Roth IRA contributions.
Income Sources
Above-the-Line Deductions
Adjusted Gross Income (Line 11)
$83,234
for 2026 tax year
Income Breakdown
$30,000 - $5,000 expenses
Above-the-Line Deductions
Auto-calculated from Schedule SE
What Your AGI Affects
QBI Deduction (20%)
Full deduction available
Roth IRA Eligibility
Full contribution allowed
Premium Tax Credit
AGI between 100-400% of federal poverty level qualifies for marketplace subsidies
Earned Income Tax Credit
AGI exceeds EITC income limits
AGI vs. Taxable Income
AGI is not your taxable income. After calculating AGI, you subtract either the standard deduction ($15,700 for single in 2026) or itemized deductions to arrive at taxable income.
What is Adjusted Gross Income (AGI)?
Form 1040, Line 11
AGI is your total income minus specific above-the-line deductions. It appears on Line 11 of Form 1040.
Gateway Number
AGI determines eligibility for tax credits, deduction limits, Roth IRA contributions, and marketplace subsidies.
IRS Identity Verification
The IRS uses your prior-year AGI to verify your identity when you e-file your tax return.
Why AGI Matters for Self-Employed Workers
QBI Deduction Thresholds
The 20% Qualified Business Income deduction phases out for specified service businesses when taxable income exceeds $191,950 (single) or $383,900 (MFJ) in 2026.
Above-the-Line Deductions
Self-employed workers get exclusive deductions that reduce AGI: half of SE tax, health insurance premiums, and retirement contributions.
Estimated Tax Payments
Your AGI helps determine quarterly estimated tax payments. Underpayment penalties apply if you don't pay enough throughout the year.
AGI vs. MAGI: What's the Difference?
Adjusted Gross Income (AGI)
- Total income minus above-the-line deductions
- Found on Form 1040, Line 11
- Used for most tax credit calculations
- Required for IRS e-file identity verification
Modified AGI (MAGI)
- AGI plus certain deductions added back
- Adds back: student loan interest, tuition, foreign income
- Used for Roth IRA contribution limits
- Used for ACA premium tax credit eligibility
AGI vs. MAGI: Key Differences and Why Both Matter
Adjusted Gross Income (AGI) is calculated on Form 1040, Line 11. It equals your total income from all sources minus specific above-the-line deductions listed in IRC Section 62. For the 2026 tax year, total income includes W-2 wages, net self-employment income from Schedule C, interest, dividends, capital gains, rental income, and retirement distributions.
Modified Adjusted Gross Income (MAGI) starts with AGI and adds back certain deductions depending on the tax benefit being tested. For Roth IRA contribution limits, MAGI adds back the student loan interest deduction, tuition deductions, and the foreign earned income exclusion under IRC Section 911. For the Premium Tax Credit under IRC Section 36B, MAGI includes tax-exempt interest and non-taxable Social Security benefits.
The IRS uses AGI as the starting point for over 50 different tax provisions. Your AGI directly controls whether you can claim the Child Tax Credit (phases out at $200,000 single / $400,000 MFJ), the Earned Income Tax Credit, IRA deductibility, and the Premium Tax Credit for marketplace health insurance. MAGI is specifically used for Roth IRA limits, the 3.8% Net Investment Income Tax threshold ($200,000 single / $250,000 MFJ), and Medicare Part B premium surcharges (IRMAA) starting at MAGI above $103,000 single / $206,000 MFJ.
2026 Above-the-Line Deductions That Reduce AGI
Above-the-line deductions are subtracted from gross income to arrive at AGI, regardless of whether you itemize or take the standard deduction. For 2026, these deductions include:
| Deduction | 2026 Limit | IRC Section |
|---|---|---|
| Educator expenses | $300 per teacher | Section 62(a)(2)(D) |
| Student loan interest | $2,500 (phases out at MAGI $80K-$95K single) | Section 221 |
| Traditional IRA contributions | $7,000 ($8,000 if age 50+) | Section 219 |
| HSA contributions | $4,300 self-only / $8,550 family | Section 223 |
| Self-employed health insurance | 100% of premiums (up to net SE income) | Section 162(l) |
| 50% of self-employment tax | Calculated on Schedule SE | Section 164(f) |
| SEP/SIMPLE/solo 401(k) | Up to $69,000 (SEP) or $23,500 (401k employee) | Section 404 |
The 50% SE tax deduction is automatic for anyone with net self-employment income. The SE tax itself is 15.3% (12.4% Social Security on the first $184,500 of combined wages and SE income in 2026, plus 2.9% Medicare on all earnings) applied to 92.35% of net SE income. Half of this amount is deductible above the line.
How AGI Affects Major Tax Credits in 2026
Your AGI determines eligibility and phase-out ranges for the most valuable federal tax credits:
| Credit | Max Amount | AGI Phase-Out Begins |
|---|---|---|
| Child Tax Credit | $2,000 per child | $200,000 single / $400,000 MFJ |
| EITC (3 children) | $8,231 | $23,890 single / $31,160 MFJ |
| American Opportunity Credit | $2,500 per student | $80,000 single / $160,000 MFJ |
| Lifetime Learning Credit | $2,000 per return | $80,000 single / $160,000 MFJ |
| Saver's Credit | $1,000 / $2,000 MFJ | $24,750 single / $49,500 MFJ |
For Traditional IRA deductibility, if you or your spouse are covered by a workplace retirement plan, the deduction phases out between MAGI of $79,000-$89,000 (single) or $126,000-$146,000 (MFJ) in 2026. Roth IRA contributions phase out between MAGI of $150,000-$165,000 (single) or $236,000-$246,000 (MFJ). Taxpayers above these limits can still use a backdoor Roth conversion strategy, though the pro-rata rule under IRC Section 408(d)(2) applies if you hold pre-tax IRA balances.
Strategies to Lower Your AGI Before Year-End
Reducing AGI can unlock credits and deductions that would otherwise be phased out. The most effective strategies for the 2026 tax year include:
- Maximize retirement contributions: A $23,500 traditional 401(k) contribution at the 24% bracket saves $5,640 in federal tax and lowers AGI dollar-for-dollar. Adding the $7,500 catch-up (age 50+) brings the total to $31,000.
- Fund an HSA: Contributing the 2026 family maximum of $8,550 to a Health Savings Account reduces AGI while creating a triple-tax-advantaged account (deductible contribution, tax-free growth, tax-free qualified withdrawals).
- Harvest capital losses: Up to $3,000 of net capital losses can offset ordinary income, directly reducing AGI. Excess losses carry forward indefinitely under IRC Section 1211(b).
- Defer income: Self-employed taxpayers using cash-basis accounting can delay invoicing until January to push income into the next tax year.
- Claim all business deductions: Every legitimate Schedule C deduction (home office under the simplified $5/sq ft method up to $1,500, vehicle expenses at $0.70/mile, business insurance, software) reduces net SE income and therefore AGI.
For taxpayers near a credit phase-out threshold, even a $1,000 reduction in AGI can be worth hundreds in recovered credits. For example, dropping AGI below $200,000 (single) preserves the full $2,000 Child Tax Credit per qualifying child.
Official References
This calculator uses current IRS rules for computing AGI:
- IRC Section 62 - Adjusted Gross Income Defined
The statutory definition of AGI and all above-the-line deductions
- IRS Form 1040
U.S. Individual Income Tax Return - AGI is Line 11
- IRS Publication 17
Your Federal Income Tax - comprehensive guide to income and deductions
This calculator provides estimates. Your actual AGI may vary based on additional income sources and deductions not included here. Consult a tax professional for personalized advice.