Adjusted Gross Income (AGI)

Your total income minus specific adjustments, used as a key tax reference figure.

Definition

AGI is gross income minus "above-the-line" adjustments such as deductible retirement and HSA contributions. It is the basis for many calculations and determines eligibility for deductions and credits. Many tax thresholds key off AGI or its close cousin, MAGI.

Example

Lowering AGI through pre-tax retirement contributions can unlock other tax breaks.

Related terms

Modified Adjusted Gross Income (MAGI)
AGI with certain deductions added back, used to test eligibility for many tax benefits.
Standard Deduction
A flat amount that reduces taxable income without itemizing.
Tax Deduction
An expense that lowers the income you are taxed on.

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