 TITLE: What Does Adjusted Gross Income Mean? CONTENT: How to Calculate Your Adjusted Gross Income\n-------------------------------------------\nYour most recent tax return can be a great help in calculating your AGI. In fact, if you're looking for your most recent AGI, it's listed on your last tax return (as mentioned, on line 8B on Form 1040). If you need a more current number or your tax return isn't handy, here's a quick guide to calculating your adjusted gross income:\n**Add up your income.** Total up all sources of taxable income. These include wages, self-employment income, unemployment benefits, tips, investment dividends, taxable interest, taxable alimony, royalties, capital gains, income from real estate investments and any other income that is not tax-exempt. What doesn't qualify as gross income? The list of exceptions is relatively long. It includes life insurance benefits, some Social Security benefits, scholarships and some employee benefits.\n**Gather up your adjustments.** Check out all the options for above-the-line deductions, which include student loan interest, tuition, retirement account contributions and educator expenses. Add up all the adjustments that apply.\n**Subtract your adjustments from your gross income** to get your AGI.\nHere's an example of how this math works:\n**Gross income:**  \nWages (from your W-2): $72,000  \nDividend income: $3,100  \nTOTAL: $75,100\n**Adjustments:**  \nIRA contribution: $2,500  \nStudent loan interest: $635  \nTOTAL: $3,135\n**Adjusted Gross Income** (Gross income minus adjustments):  \n$75,100 - $3,135 = $71,965\nIf your finances are simple and accuracy isn't mission-critical, doing these back-of-the-envelope estimates is fine. However, if you need more detail, visit the IRS website for current information on gross income, exceptions, adjustments and more. And if you're submitting your AGI as part of a mortgage application, FAFSA or your tax return, consider working with a tax professional who can help you make sure your calculations are comprehensive and accurate. To find a trusted tax professional, you can use this IRS resource. END