Taxes Made Simple

Adjusted gross income (AGI) is simply your taxable income before subtracting out your exemption and your standard deduction (or itemized deductions, if you itemize).

Alternatively, your adjusted gross income is the sum of all of your different types of taxable income, after subtracting several deductions:

• Educator expenses,
• Health Savings Account (HSA) deductions,
• Moving expenses,
• One half of your self-employment tax,
• Self-employed health insurance deductions,
• SEP, SIMPLE, or qualified plan contributions,
• Alimony,
• Traditional IRA contributions,
• Deductible student loan interest,
• Tuition and fees deduction, and
• The domestic production activities deduction.

Your adjusted gross income can be found at the bottom of the front page of your Form 1040. (Line 37.)

Want to learn more about taxes? Take a look at my book, Taxes Made Simple: Income Taxes Explained in 100 Pages or Less.