📊 Income Sources
1
Wages (W-2)
Box 1 of Form W-2
2
Rental Income
Net rental income (can be negative)
3
Unemployment Income
Unemployment compensation
4
Business Income
Schedule C net income (can be negative)
5
Pension Income
401k, pension distributions
6
Social Security Income
Annual Social Security benefits
+ Show Additional Income Types
7
Interest Income
Taxable interest from banks, CDs
8
Dividends
Ordinary dividends from investments
9
IRA Distributions
Taxable portion only
10
Farm Income
Net farm income (can be negative)
11
Capital Gains
Net capital gains/losses
12
Other Income
Gambling, awards, other taxable income
13
Tax-Exempt Interest
Municipal bond interest (for SS calc)
Total Income: $0
📝 Above-the-Line Deductions
1
401(k) Contributions
Max $23,500
Traditional 401(k) employee deferrals
2
HSA Contributions
Max $4,650
Health Savings Account contributions
3
Business Expenses
Unreimbursed employee expenses
4
Traditional IRA
Max $7,000
Deductible IRA contributions
5
Student Loan Interest
Max $2,500
Student loan interest paid
6
Tuition & Fees
Qualified education expenses
+ Show Additional Deductions
7
Educator Expenses
Max $300
K-12 teacher classroom supplies
8
Moving Expenses
Military/Intelligence Community only
9
½ Self-Employment Tax
Half of SE tax (Schedule SE)
10
SEP-IRA/Simple IRA
Self-employed retirement plans
11
Early Withdrawal Penalty
Bank/CD early withdrawal penalties
12
Alimony Paid
Pre-2019 divorce decrees only
13
Archer MSA
Medical Savings Account contributions
14
Qualified Tips
Employer tip income allocation
Total Deductions: $0
⚠️ Critical for Student Loan Borrowers:
This AGI calculation includes the complex Social Security provisional income rules that most calculators ignore. Your final AGI determines eligibility and payment amounts for IBR, PAYE, REPAYE/SAVE, and ICR plans. Maximizing above-the-line deductions while understanding Social Security taxation can significantly reduce your monthly payments.
📚 Legal References & Key Information
IRC § 62: Definition of adjusted gross income and complete list of above-the-line deductions
IRC § 86: Taxation of Social Security benefits based on provisional income thresholds
34 CFR 682.215 & 685.209: Use of AGI for income-driven student loan payment calculations
Provisional Income Formula: AGI (before SS) + ½ Social Security + Tax-exempt interest
SS Thresholds: Single/MFS: $25,000 & $34,000 | MFJ: $32,000 & $44,000
Student Loan Impact: AGI determines discretionary income which directly affects payment amounts. Married filing separately excludes spousal income but may include more Social Security income in AGI.