Where Do I Find My Gross Income on My Tax Return?
Your tax return lists different income totals. Learn to locate the correct figure for loan applications and understand which number the IRS uses for taxes.
Locating your gross income on a tax return is often necessary for a loan application or personal financial planning. This figure, along with the related but distinct Adjusted Gross Income (AGI), serves as a foundation for your financial picture.
Locating Gross Income on Form 1040
For most individuals filing a standard tax return, “gross income” is represented by the “Total Income” figure. On the 2023 IRS Form 1040, you can find this amount on Line 9. This line is the sum of all taxable income you received throughout the year before any adjustments are made. These sources include wages, salaries, and tips reported on Form W-2. It also includes taxable interest, dividends, distributions from retirement plans like IRAs and 401(k)s, and Social Security benefits, as well as other income from Schedule 1.
Understanding Adjusted Gross Income (AGI)
A frequent point of confusion is the difference between total income and Adjusted Gross Income (AGI). The AGI is calculated after your total income and is found on Line 11 of the 2023 Form 1040. AGI is your gross income from Line 9 minus specific, allowable deductions, often referred to as “above-the-line” deductions, which are detailed on Schedule 1 (Form 1040).
These adjustments reduce your total income to arrive at your AGI. Common examples include contributions to a traditional IRA, the student loan interest deduction, and educator expenses for eligible teachers. The calculation is Total Income (Line 9) minus Total Adjustments from Schedule 1 equals Adjusted Gross Income on Line 11.
The Importance of Gross Income and AGI
Your total income and AGI are used for different purposes. When you apply for a mortgage or a car loan, lenders are typically most interested in your gross income from Line 9. This figure gives them a clear picture of your total earnings and capacity to make payments before any tax-specific deductions are considered.
The Internal Revenue Service, on the other hand, places greater emphasis on your Adjusted Gross Income from Line 11. This figure is the starting point for calculating your eligibility for many tax credits and deductions. For example, the ability to claim certain education or medical expense deductions is often phased out based on your AGI, so a lower AGI can lead to a lower tax liability.