Adjusted Gross Income

byPaytm Editorial TeamFebruary 2, 2026

Meaning

Understanding your Adjusted Gross Income (AGI) is fundamental for tax planning.

Definition

Adjusted Gross Income (AGI) is your gross income minus specific “above-the-line” deductions. It’s a key figure on your tax return.

Calculation

AGI is calculated by taking total income (wages, interest, dividends) and subtracting qualified deductions like traditional IRA contributions or student loan interest.

Significance

Your AGI determines eligibility for various tax credits, deductions, and income-based benefits, helping establish your taxable income.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.