The adjusted gross income or AGI is used as the basis for lots of things, like calculating your stimulus check or tax liability when you file your income tax return. The AGI is also often used for computing certain tax credits and deductions allowable to you. Most current example of use of AGI is from IRS FAQ on economic impact payments
Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds.
How to find your last year’s AGI?
- Simply look at the printed copy of last year’s return to find your adjusted gross income. Go to page 2, line 7 of your Form 1040 for tax year 2018 or in case you get tax return for tax year 2019 , refer Line 8b on Form 1040 (or 1040-SR).
- If you are over age 16 and filing your first return, you can enter zero for your Aggregate Gross Income ( AGI. )
How to get your AGI if you don’t have my prior year return?
In case ,you do not have last year’s tax return, you can apply for a copy of transcript from the IRS. Read How to Get Tax Return Transcript from IRS ? Once you get the transcript, you get your AGI. In case , you have not filed the tax return, you will have to compute the AGI by filling out tax return for prior year. You can also file this newly filled return for prior year in paper form because the prior years return can not be filed electronically .
How do I calculate my AGI?
Form 1040 is best to figure out what your AGI is.Whatever you earned for the year, including wages, dividends, capital gains, retirement distributions, and so on are your taxable income . These amounts should be added . Once you’ve added up all these you will have to subtract any “adjustment to income” amounts that you have. These adjustments include:
- educator expenses
- health savings account deductions
- a portion of the self-employment tax
- self-employed health insurance
- penalties for early withdrawals from savings
- alimony paid for pre-2019 divorces
- student loan interest
- IRA contributions
- unreimbursed moving expenses for military service members
Video on AGI
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