AGI Calculator

Q: What are above-the-line deductions?

Above-the-line deductions reduce gross income to arrive at AGI. You can claim them whether you take the standard deduction or itemize. Common ones include HSA contributions, student loan interest ($2,500 max), educator expenses ($300), SE tax deduction (50%), and Traditional IRA contributions.

Q: How can I reduce my AGI?

Maximize 401(k) contributions ($24,500 in 2026), max out HSA ($4,400/$8,750), contribute to Traditional IRA ($7,000 if eligible), use SEP-IRA if self-employed, harvest capital losses ($3,000/yr), and defer income or accelerate deductions across tax years.

Q: What changed with OBBBA for AGI deductions?

OBBBA introduced temporary above-the-line deductions for 2025-2028: qualified tips ($25,000 max), qualified overtime ($12,500/$25,000), US-made auto loan interest ($10,000). A $4,000 senior bonus deduction for 65+ with income under $75K/$150K MFJ. SALT cap of $10,000 made permanent.

Calculate your Adjusted Gross Income, check which tax benefits you qualify for at your AGI level, and find strategies to reduce your AGI below key thresholds.

Calculate your Adjusted Gross Income and see how it flows to taxable income

Wages / salary

W-2 box 1 gross wages

Filing status

Self-employment income

Net profit from Schedule C

Interest & dividends

Capital gains

Rental income

Social Security benefits

Total benefits (up to 85% may be taxable)

Above-the-line deductions

Student loan interest

Max $2,500

HSA contribution

$4,400 self / $8,750 family (2026)

Traditional IRA contribution

$7,000 ($8,000 if 50+)

Educator expenses

Max $300

OBBBA new deductions (2025-2028)

Qualified tips

Max $25,000 (2025-2028)

Qualified overtime

Max $25,000 for MFJ (2025-2028)

Auto loan interest (US-made)

Max $10,000 for US-manufactured vehicles

Senior bonus deduction (65+)

$4,000 if 65+ and income under $150,000

Try another scenario

How to Use This Calculator

Calculate AGI tab

Enter your wages or salary and filing status. The calculator computes your Adjusted Gross Income by subtracting above-the-line deductions from gross income. Expand "More options" to add self-employment income, investment income, Social Security benefits, and all available above-the-line deductions including OBBBA-era tip, overtime, and auto loan interest deductions.

Why AGI Matters tab

Enter your AGI (or bring it from Tab 1) and see exactly which tax benefits you qualify for. The calculator checks Roth IRA, Traditional IRA, Child Tax Credit, ACA premium subsidies, education credits, NIIT, IRMAA, and more — each against the correct 2026 phase-out threshold for your filing status.

Reduce Your AGI tab

Set your current AGI and a target, and the calculator ranks strategies by impact: 401(k), HSA, Traditional IRA, SEP-IRA, capital loss harvesting, and timing strategies. It shows your new projected AGI and which thresholds you now clear.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a spouse, accountant, or financial advisor.

The Formula

AGI is the most important number on your tax return. It determines eligibility for dozens of credits and deductions:

AGI = Gross Income - Above-the-Line Deductions

Gross Income = Wages + SE Income + Interest/Dividends + Capital Gains + Rental Income + SS Benefits (taxable)

Above-the-Line = SE Tax Deduction + Student Loan Interest + HSA + Traditional IRA + Educator Expenses + OBBBA Deductions

Taxable Income = AGI - Standard Deduction (or Itemized Deductions)

Unlike itemized deductions, above-the-line deductions reduce your AGI itself. This means they lower the number used to determine eligibility for Roth IRA contributions, ACA subsidies, education credits, and every other AGI-tested benefit.

MAGI (Modified AGI) varies by program. For Roth IRA, MAGI = AGI + Traditional IRA deduction + student loan interest deduction. For ACA, MAGI = AGI + tax-exempt interest + foreign income.

Example

The Chen Family — W-2 employees, $85,000 MFJ

The Chen family earns $85,000 in wages (married filing jointly). They have no self-employment income, no investment income, and no above-the-line deductions.

Calculate AGI tab

Wages$85,000

Above-the-line deductions$0

AGI$85,000

Standard deduction (MFJ)-$32,200

Taxable income$52,800

Marginal bracket12%

Why AGI Matters tab

At $85,000 AGI (MFJ):

Roth IRAEligible (under $236K)

CTCFull $2,200/child (under $400K)

ACA subsidyEligible (under ~$124K for family of 4)

AOTCFull credit (under $160K)

NIITNot subject (under $250K)

With HSA contribution

If Mr. Chen contributes $4,400 to his HSA (self-only HDHP), AGI drops to $80,600, saving approximately $968 in federal tax (22% bracket transition) plus $337 in FICA. Total savings: $1,305 per year while building a tax-free medical fund.

2026 AGI Phase-Out Thresholds (OBBBA)

Benefit	Single	MFJ
Roth IRA contribution	$150K-$165K	$236K-$246K
Trad IRA deduction (with plan)	$79K-$89K	$123K-$143K
Child Tax Credit ($2,200)	$200K	$400K
AOTC education credit	$80K-$90K	$160K-$180K
Student loan interest	$75K-$90K	$155K-$185K
NIIT (3.8% surtax)	$200K	$250K
IRMAA Tier 1	~$106K	~$212K
ACA premium subsidy	~400% FPL (varies by family size)
OBBBA tip/OT deductions	2025-2028 only, no income limit

FAQ

What is Adjusted Gross Income (AGI)? ▼

AGI is your total gross income minus specific above-the-line deductions. It appears on line 11 of Form 1040. Your AGI determines eligibility for Roth IRA contributions, the Child Tax Credit, ACA premium subsidies, education credits, and dozens of other tax benefits. Unlike itemized deductions, above-the-line deductions reduce AGI itself, which can unlock additional benefits.

What is the difference between AGI and MAGI? ▼

MAGI (Modified Adjusted Gross Income) is AGI with certain items added back. The modifications depend on which benefit you are checking. For Roth IRA eligibility, MAGI = AGI + Traditional IRA deduction + student loan interest deduction. For ACA premium subsidies, MAGI = AGI + tax-exempt interest + foreign earned income. For most people, AGI and MAGI are the same or very close.

What are above-the-line deductions? ▼

Above-the-line deductions are subtracted from gross income to arrive at AGI. You can claim them whether you take the standard deduction or itemize. Common ones include: HSA contributions, student loan interest (up to $2,500), educator expenses ($300), self-employment tax deduction (50% of SE tax), and Traditional IRA contributions. The OBBBA added new above-the-line deductions for qualified tips, overtime, and US-made auto loan interest (2025-2028).

How can I reduce my AGI? ▼

The most effective strategies: (1) Maximize 401(k) contributions ($24,500 in 2026, $32,000 if 50+), which reduce W-2 income. (2) Max out HSA ($4,400 self / $8,750 family). (3) Contribute to a Traditional IRA ($7,000 if eligible for deduction). (4) If self-employed, use a SEP-IRA or Solo 401(k). (5) Harvest capital losses (up to $3,000/year against ordinary income). (6) Defer income or accelerate deductions to shift AGI between tax years.

What changed with OBBBA for AGI deductions? ▼

The One Big Beautiful Bill Act (OBBBA) introduced several temporary above-the-line deductions effective 2025-2028: qualified tips (up to $25,000), qualified overtime ($12,500 single / $25,000 MFJ), and US-manufactured auto loan interest (up to $10,000). It also created a $4,000 senior standard deduction bonus for taxpayers 65+ with income under $75,000 ($150,000 MFJ). The SALT cap of $10,000 was made permanent. The Pease limitation on itemized deductions remains eliminated.

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