Where Can You Find Your AGI on a W-2?

Understanding various tax documents is important for managing personal finances and preparing for tax season. Accurately reporting income ensures compliance with tax regulations and simplifies tax preparation, providing a clearer picture of one’s financial standing.

Understanding Your W-2

The Form W-2, also known as the Wage and Tax Statement, is a document employers are required to provide to their employees by January 31st each year. This form summarizes the wages paid to an employee and the taxes withheld from those wages during the calendar year. It serves as an important record for employees when they prepare their federal and state income tax returns.

Box 1 of the W-2, titled “Wages, tips, other compensation,” reports the total taxable wages an employee earned from their employer. This amount is generally your gross taxable earnings before certain pre-tax deductions. The W-2 also shows amounts withheld for federal income tax, Social Security tax, and Medicare tax in separate boxes. While the W-2 provides a comprehensive overview of your earnings and withholdings from a specific employer, it does not directly report your Adjusted Gross Income (AGI).

What Adjusted Gross Income Is

Adjusted Gross Income (AGI) is a key figure in tax calculations, representing your total income from all sources minus specific deductions. The IRS uses this figure to determine eligibility for various tax credits, deductions, and other tax benefits. A lower AGI can lead to more tax savings.

AGI is calculated by starting with your gross income, which includes your wages reported on your W-2 Form, along with other income sources like interest, dividends, capital gains, or business income. From this total gross income, certain “above-the-line” deductions are subtracted. These deductions are subtracted before calculating AGI, regardless of whether you take the standard deduction or itemize. Examples of common above-the-line deductions include contributions to a traditional Individual Retirement Account (IRA), student loan interest payments, and educator expenses.

Finding Your Adjusted Gross Income

Your Adjusted Gross Income (AGI) is not found on your Form W-2. It is a calculated figure based on all your income sources and applicable adjustments. Your AGI is reported on your federal income tax return, specifically on Line 11 of Form 1040, the U.S. Individual Income Tax Return.

For previous tax years, you can locate your AGI on Line 11 of the Form 1040 you filed. When preparing current year taxes, your tax software or tax preparer will calculate your AGI for you, considering all income and eligible adjustments.