AGI (Adjusted Gross Income)

Category: tax

A measure of income used to determine how much of your income is subject to taxes.

AGI is your "gross income" (salary, interest, dividends) minus specific "above-the-line" deductions like student loan interest or HSA contributions. AGI is a crucial gatekeeper for many tax credits; if your AGI is too high, you often lose eligibility for credits.

Common Examples

• The family’s high AGI made them ineligible for the specific education tax credit they hoped to claim on their annual return.
• Careful management of AGI is a primary goal for tax planning, as it opens the door to credits that can be worth thousands of dollars.