AGI

Personal Finance

Adjusted Gross Income (AGI) is your total gross income minus specific 'above-the-line' adjustments — traditional IRA contributions, student loan interest deduction, HSA contributions, half of self-employment tax, educator expenses, alimony paid under pre-2019 agreements. AGI is the most important number on your tax return because it determines eligibility for dozens of credits, deductions, and phase-outs. Lower AGI unlocks: Roth IRA contributions (phase-out $146K-$161K single in 2026), Premium Tax Credits, Saver's Credit, deductibility of medical expenses, and student loan interest deduction. Anything that reduces AGI (HSA, 401k, IRA) generally helps multiple downstream calculations.