Therefore, adjusted gross income is simply your gross income minus adjustments. Another instance is a school teacher who purchases necessary classroom supplies, which can be subtracted as an expense.
You can lower your AGI by using these deductions which could possibly lead to a tax refund. With some background knowledge about AGI and W-2, you can coast across the jumble of alphabet soup and get the tax terms clearer in your head. W-2 is a form used by employers to report your taxable income to you and to the IRS.
You then use this information on Form , A or EZ to file your tax return. To retrieve your original AGI from your previous year's tax return you may do one of the following:. If your filing status changed from the previous year to "Married Filing Joint", then each taxpayer will use their individual original AGI from their respective prior year tax returns.
If the change is from "Married Filing Joint", then both taxpayers will use the same original AGI from the prior year's joint tax return.
If you have never filed before, or if you filed last year using an ITIN and you have a Social Security Number this year, choose I am a first-time filer or I did NOT file a tax return on the prior year information screen.
If you are married filing jointly and only one spouse filed last year, enter the prior year AGI for that spouse and zero 0 for the spouse who has never filed before. Business Taxes Professional Taxes. Sign In. You can find your AGI on the form you used to file your last year's return.
Remember to consider all sources of income that contribute to your AGI, including:. AGI doesn't include exemptions or standard or itemized tax deductions , so set those aside to figure into your taxable income later. Your AGI impacts many of the tax deductions and credits you can take at tax time. Depending on your filing status, you may be subject to an AGI limit—a dollar amount that limits the deductions you can take—which usually applies to higher income earners.
Remember, with TurboTax , we'll ask you simple questions about your life and help you fill out all the right tax forms. Whether you have a simple or complex tax situation, we've got you covered. Feel confident doing your own taxes. Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest.
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