The 1040 starts with total income on Line 22 and the following are adjustments that can be made to arrive at AGI.
AGI calculation
Your
adjusted gross income is all of the income you bring in, less certain
adjustments. You can find the allowable reductions to your income on the front
page of your Form 1040. Commonly used adjustments include the following:
- IRA and self-employed
retirement plan contributions
- Alimony payments
- Self-employed health
insurance payments
- One-half of any
self-employment taxes paid
- Health savings account
deductions
- Penalties on the early
withdrawal of savings
- Educator expenses
- Student loan interest
- Moving expenses
- Tuition and fees
- Deductions for domestic
production activities
- Certain business expenses of
performing artists, reservists, and fee-basis government officials
