Adjusted Gross Income

To get our Adjusted Gross Income (Line 37 of our 1040), we get to subtract certain expenses from our Gross Income (Line 22 of our 1040).  The expenses we get to deduct is often referred to as items “deducted FOR AGI” or “ABOVE the line deductions”.

Here is what you can subtract (I suggest looking at a 1040 as you read this list!  The items in green are more common to us millennials.):

You add all those items up and put the total on Line 36 and then subtract Line 36 from Line 22 (your Gross Income).  The difference goes on Line 37, which is your AGI.

Your AGI is used for a number of tax calculations.  So the lower your AGI, the better.

4 thoughts on “Adjusted Gross Income

  1. Pingback: Standard Deduction vs. Itemized Deductions | Millennial Finance

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  3. Pingback: Using Money in Your Traditional IRA | Millennial Finance

  4. Pingback: IRA Phase Outs (aka when you make too munch money for IRAs) | Millennial Finance

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