How do you calculate Adjusted Gross Income (AGI)?

Adjusted Gross Income (AGI) is calculated by taking your total gross income, which includes wages, dividends, capital gains, and other income sources, and then subtracting specific deductions known as adjustments. These adjustments may include contributions to retirement accounts, student loan interest, educator expenses, and certain business expenses. The resulting figure is your AGI, which is used to determine eligibility for various tax credits and deductions.