Adjusted Gross Income (AGI) Meaning

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Adjusted gross income (AGI) is a US individual income-tax measure equal to gross income less specified adjustments allowed in calculating AGI.

Example

Gross income of 60,000 less 2,000 of qualifying adjustments gives AGI of 58,000.

Remember the difference

AGI is not taxable income. Eligibility, deduction limits and later deductions depend on the tax year and the taxpayer’s circumstances.

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Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.

Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.

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