What is Adjusted Gross Income (AGI) and what does it mean for your taxes?

Taxpayers use Adjusted Gross Income (AGI) as a starting point for calculating taxes and determining eligibility for tax credits and deductions. Simply, your AGI is your gross income minus specific payments such as student loan interest or retirement contributions. Understanding how your AGI is calculated can help you determine your tax obligations. Once calculated, you can use the number to determine your taxable income by taking either the standard deduction or itemizing to further reduce your liability. Your AGI also helps you determine which tax credits you can take to reduce your overall tax bill.

Learn more about Adjusted Gross Income and how to reduce yours.

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