.agi-calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 700px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e0e0e0;
border-radius: 10px;
background-color: #f9f9f9;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.05);
}
.agi-calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 25px;
font-size: 26px;
}
.agi-calculator-container .input-group {
margin-bottom: 15px;
display: flex;
flex-direction: column;
}
.agi-calculator-container label {
margin-bottom: 7px;
color: #555;
font-size: 15px;
font-weight: 600;
}
.agi-calculator-container input[type="number"] {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 6px;
box-sizing: border-box;
font-size: 16px;
color: #333;
-moz-appearance: textfield; /* Firefox */
}
.agi-calculator-container input[type="number"]::-webkit-outer-spin-button,
.agi-calculator-container input[type="number"]::-webkit-inner-spin-button {
-webkit-appearance: none;
margin: 0;
}
.agi-calculator-container button {
width: 100%;
padding: 14px;
background-color: #007bff;
color: white;
border: none;
border-radius: 6px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s ease;
margin-top: 20px;
}
.agi-calculator-container button:hover {
background-color: #0056b3;
}
.agi-calculator-container .result {
margin-top: 25px;
padding: 18px;
border: 1px solid #d4edda;
background-color: #e9f7ef;
border-radius: 8px;
text-align: center;
font-size: 20px;
color: #155724;
font-weight: bold;
}
.agi-calculator-container .result span {
color: #007bff;
font-size: 22px;
}
.agi-calculator-container .section-title {
font-size: 20px;
color: #007bff;
margin-top: 30px;
margin-bottom: 15px;
border-bottom: 2px solid #007bff;
padding-bottom: 5px;
}
Adjusted Gross Income (AGI) Calculator
Income Sources
Above-the-Line Deductions
Your Estimated Adjusted Gross Income (AGI): $0.00
function calculateAGI() {
// Income Sources
var grossWages = parseFloat(document.getElementById('grossWages').value) || 0;
var taxableInterest = parseFloat(document.getElementById('taxableInterest').value) || 0;
var ordinaryDividends = parseFloat(document.getElementById('ordinaryDividends').value) || 0;
var businessIncome = parseFloat(document.getElementById('businessIncome').value) || 0;
var capitalGains = parseFloat(document.getElementById('capitalGains').value) || 0;
var otherTaxableIncome = parseFloat(document.getElementById('otherTaxableIncome').value) || 0;
// Above-the-Line Deductions
var iraContributions = parseFloat(document.getElementById('iraContributions').value) || 0;
var studentLoanInterest = parseFloat(document.getElementById('studentLoanInterest').value) || 0;
var hsaContributions = parseFloat(document.getElementById('hsaContributions').value) || 0;
var seTaxDeduction = parseFloat(document.getElementById('seTaxDeduction').value) || 0;
var alimonyPaid = parseFloat(document.getElementById('alimonyPaid').value) || 0;
var educatorExpenses = parseFloat(document.getElementById('educatorExpenses').value) || 0;
// Calculate Total Gross Income
var totalGrossIncome = grossWages + taxableInterest + ordinaryDividends + businessIncome + capitalGains + otherTaxableIncome;
// Calculate Total Above-the-Line Deductions
var totalDeductions = iraContributions + studentLoanInterest + hsaContributions + seTaxDeduction + alimonyPaid + educatorExpenses;
// Calculate Adjusted Gross Income (AGI)
var agi = totalGrossIncome – totalDeductions;
// Display Result
document.getElementById('agiResult').innerHTML = 'Your Estimated Adjusted Gross Income (AGI): $' + agi.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",") + '';
}
Understanding Your Adjusted Gross Income (AGI)
Adjusted Gross Income (AGI) is a crucial figure on your tax return. It's your gross income minus specific deductions, often referred to as "above-the-line" deductions. AGI is more than just a number; it's a foundational component that influences many other aspects of your tax situation, including eligibility for certain tax credits, deductions, and even the taxability of some income.
What is Gross Income?
Before calculating AGI, you start with your total gross income. This includes nearly all income you receive from various sources, such as:
- Wages, Salaries, and Tips: Income reported on a W-2 form.
- Taxable Interest: Interest earned from bank accounts, bonds, etc.
- Ordinary Dividends: Income from stock ownership.
- Business Income or Loss: Profits or losses from self-employment or a business (reported on Schedule C).
- Capital Gains or Losses: Profits or losses from selling assets like stocks or real estate.
- Rental and Royalty Income: Income from properties or intellectual property.
- Alimony Received: For divorce or separation agreements executed before 2019.
- Unemployment Compensation: Benefits received from unemployment.
- Other Taxable Income: This can include gambling winnings, taxable refunds, and other miscellaneous income.
What are "Above-the-Line" Deductions?
These are specific deductions that you can subtract from your gross income to arrive at your AGI. They are called "above-the-line" because they are taken before you calculate your taxable income, and you don't need to itemize to claim them. Common above-the-line deductions include:
- Traditional IRA Contributions: Contributions to a traditional Individual Retirement Arrangement (IRA) may be deductible, depending on your income and whether you're covered by a retirement plan at work.
- Student Loan Interest Deduction: You can deduct a limited amount of interest paid on qualified student loans.
- Health Savings Account (HSA) Contributions: Contributions made to an HSA (if not made pre-tax through an employer) are deductible.
- Self-Employment Tax Deduction: If you're self-employed, you can deduct one-half of your self-employment taxes.
- Alimony Paid: For divorce or separation agreements executed before 2019, alimony payments are deductible by the payer.
- Educator Expenses: Eligible educators can deduct a limited amount of unreimbursed business expenses.
- Penalty for Early Withdrawal of Savings: If you paid a penalty for withdrawing funds early from a CD or similar account.
Why is AGI Important?
Your AGI is a critical number for several reasons:
- Eligibility for Tax Credits: Many tax credits, such as the Child Tax Credit, Earned Income Tax Credit, and education credits, have AGI phase-out limits.
- Deductibility of Itemized Deductions: Certain itemized deductions, like medical expenses, are only deductible if they exceed a percentage of your AGI.
- Taxability of Social Security Benefits: The amount of your Social Security benefits that are taxable depends on your "provisional income," which is based on your AGI.
- Eligibility for Roth IRA Contributions: There are AGI limits for contributing to a Roth IRA.
- Premium Tax Credit: Eligibility for and the amount of the Premium Tax Credit (for health insurance purchased through the marketplace) are based on AGI.
AGI vs. Taxable Income
It's important to distinguish AGI from taxable income. Your AGI is an intermediate step. After calculating your AGI, you then subtract either the standard deduction or your itemized deductions (whichever is greater) to arrive at your taxable income. This taxable income is the amount on which your tax liability is calculated.
Example Calculation:
Let's consider a hypothetical individual:
- Gross Wages: $70,000
- Taxable Interest: $500
- Ordinary Dividends: $1,200
- Business Income: $10,000
- Net Capital Gains: $2,000
- Other Taxable Income: $300
- Traditional IRA Contributions: $6,000
- Student Loan Interest Paid: $1,500
- HSA Contributions: $2,000
- Self-Employment Tax Deduction: $1,000
Total Gross Income: $70,000 + $500 + $1,200 + $10,000 + $2,000 + $300 = $84,000
Total Above-the-Line Deductions: $6,000 + $1,500 + $2,000 + $1,000 = $10,500
Adjusted Gross Income (AGI): $84,000 – $10,500 = $73,500
This AGI of $73,500 would then be used to determine eligibility for various tax benefits and to calculate the final taxable income.