Download Adjusted Gross Income Calculator 2022 in Excel, OpenOffice Calc, and Google Sheets to calculate AGI for Federal Income tax purposes.
AGI or Adjusted Gross Income is the remainder after deducting allowable adjustments from your gross income. Moreover, AGI helps to define many tax thresholds and the eligibility of tax credits.
Furthermore, AGI helps to calculate the Modified Adjusted Gross Income (MAGI) which defines the contribution as well as deduction amount for Traditional as well as Roth IRAs(Individual Retirement Accounts).
Table of Contents
What Is Adjusted Gross Income(AGI)?
According to IRS
“Adjusted Gross Income (AGI) is defined as gross income minus adjustments to income. Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Adjustments to Income include such items as Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account. Your AGI will never be more than your Gross Total Income on you return and in some cases may be lower.”
In other words, Adjusted Gross Income is the amount that remains after deducting allowable adjustments from your Gross Income. Gross income is the income from all sources including line 1 of w-2.
Moreover, it allows the taxpayer to reduce their income before tax exemptions for military service, dependent status. and other similar exemptions.
You can find the AGI or the Adjusted Gross Income on Form 1040 at line number 11. See the image below for reference:
Formula To Calculate AGI
Adjusted Gross Income = Gross Income – Allowable Adjustments
Gross Income = Income from Salaries, Wages, Tips, etc. + Income from other sources
Download Adjusted Gross Income Calculator 2022 (Excel, OpenOffice Calc & Google Sheets)
We have created a simple and easy-to-use Adjusted Gross Income Calculator with predefined formulas and functions. Just insert the applicable amounts and it will calculate the AGI for you.
Download by clicking below on the desired format:
Additionally, you can also download Federal Income Tax templates like Itemized Deduction Calculator 2022, Federal Income Tax Calculator 2022, Recovery Rebate Credit Calculator, Employee Retention Credit Calculator 2021, Paycheck Calculator, and IRS Compliant Mileage Log Template.
Furthermore, feel free to contact us for the customization of this template as per your requirement. We also design new templates based on your needs. You can hire us for our services on Fiverr or directly contact us at email@example.com.
How To Use Adjusted Gross Income Calculator 2022?
This template consists of 3 sections:
- Income from Salaries, Wages, Tips, etc.
- Income from Other Sources
- Allowable Adjustments
Income From Salaries, Wages, Tips, etc.
Add up all of your wages, salaries, tips, etc. Insert only the amount for the principal taxpayer in this section. If you are filing jointly with your spouse then insert their amount on the right side. It should also include any tips that you haven’t disclosed to your employer, such as assigned tips that show in box 8 of your W-2 form(s).
If your amount in Line 5 of Form W-2 is different then use the next section. While calculating the template will use the amount whichever is higher. If you’re unclear about the amount or don’t have access to your W-2 form, enter $0 here
Income From Other Sources
Insert only those amounts that apply to you. This section consists of the following heads:
Dividends (Includes any qualified dividends)
Qualified Dividends (Included in Dividends above)
Taxable Refunds of State and Local Income Taxes
Business Income or Loss as per Schedule C and E subject to self-employment Taxes
Spouse’s Business Income or Loss as per Schedule C and E subject to self-employment Taxes
Short Term Capital Gain or Loss
Long Term Capital Gain or Loss
Other Gain or Losses
Taxable IRA Distributions
Taxable pensions and annuity distributions
Income from Rentals, royalties, S Corporations, and Schedule E (Not included and subject to NIIT)
Income from Rentals, royalties, S Corporations, and Schedule E (Not included and not subject to NIIT)
Farm Income or Losses (Schedule F)
Total Unemployment compensation
Social Security Benefits
Taxable Social Security Benefits(85%)
Note: Fill information in the Spouse’s Business Income only if the filing status is Married Filing Jointly.
Moreover, 85% of the total Social Security Benefits are taxable. Thus, insert the total amount in the cell and it will automatically calculate the 85% amount in the next cell.
Gross Income = Income from Wages, Salaries, tips, etc + Income from Other Sources
Adjustment to Gross Income
IRS allows some deductions in the form of adjustments to lower your taxable income. The amount left after these adjustments is called Adjusted Gross Income (AGI).
If you are filing jointly kindly insert the sum of your and your spouse’s amounts.
These Adjustments include the following:
Business Expenses (Form 2106)
Health Savings Account (HSA) Deduction (Form 8889)
50% of Self-Employment Tax (Schedule SE)
Self-employed SEP, SIMPLE and qualified plans
Self-employed Health Insurance Deduction
Early Withdrawal Penalty from Certificate of Deposit or a Time-Deposit account before maturity
Student Loan Interest Deduction
You can deduct up to $300 in expenditures if you were a “qualified educator” in 2022. If you are married and both of you are ‘eligible educators,’ the cap is $500 ($250 each) if you file jointly.
From kindergarten through 12th grade teachers, instructors, counselors, administrators, or assistants who have worked at least 900 hours in a school during the school year are eligible.
Insert only those amounts that apply to you.
Adjusted Gross Income = Gross Income – Adjustments
How To Calculate AGI using W-2 Form?
Every employer provides the W-2 Forms to their employees at the end of each year. It consists of essential information to be reported on your federal income tax returns.
There are 3 steps to this:
- Find your income from salaries, wages, tips, etc from Form W-2.
- Adding incomes from other sources.
- Deduct eligible Adjustments.
Form W-2 displays Income from Salaries, Waged, Tips, etc. in box 1. Now, add income from other sources which are not reported on the w-2.
These include taxable interest, dividends, capital gains, royalties, alimony received, etc. This will give you your gross income.
Lastly, deduct the adjustment to which you qualify.
The final amount that remains after deduction is your Adjusted Gross Income(AGI).
Frequently Asked Questions
Is the amount in Line 1 of W-2 your AGI?
No. The amount in line one is part of your gross income. Thus, it is not your AGI. You can find AGi after deducting adjustments from this amount.
How Do I Determine If My Social Security Is Taxable?
Add Social Security to the total of your annual gross income. You won't have to pay taxes on your Social Security if you have little or no other income. Nevertheless, up to 50% of your Social Security payments may be subject to taxation if you are an individual filer and have earned at least $25,000 in gross income for the year, which includes Social Security. The minimal filing amount for a married couple is $32,000. Up to 85% of your total income may be subject to taxation if it is $34,000 or more (or $44,000 for a couple).
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Disclaimer: This article is for information and educational purpose. Information provided here shall not be treated as tax advice. Kindly consult a tax expert before filing your tax return.