Which W2 Box Is Adjusted Gross Income?

Adjusted Gross Income (AGI) is a fundamental concept in federal income tax calculations. Many taxpayers look for AGI on their Form W2, but it is not directly reported in any box. The W2 provides information about wages and withholdings from a single employer, which is only one component of the broader AGI calculation.

Understanding Adjusted Gross Income

Adjusted Gross Income (AGI) represents your total gross income from all sources, with certain IRS-allowed subtractions. It helps determine your tax liability and eligibility for various tax benefits, including deductions and credits. AGI is calculated after all income sources are accounted for but before standard or itemized deductions are applied. This figure provides a comprehensive view of your financial standing for tax purposes.

W2 Income and Its Contribution

Form W2, specifically Box 1, reports “Wages, tips, and other compensation” for federal income tax purposes. This includes salary, bonuses, and other taxable earnings from your employer. While Box 1 is often a significant part of your income, it represents only earnings from a single employer. Your AGI considers all income sources and adjustments beyond what is detailed on a W2.

Calculating Adjusted Gross Income

Calculating AGI begins with your total gross income, encompassing all taxable income received during the year. This includes wages from your W2, self-employment income, interest, dividends, capital gains, rental income, and other taxable earnings. From this total, specific “above-the-line” deductions are subtracted. These adjustments reduce your gross income to arrive at your AGI.

Common “above-the-line” deductions include contributions to a traditional Individual Retirement Account (IRA), student loan interest payments, and Health Savings Account (HSA) contributions. Other adjustments can include educator expenses or a portion of self-employment taxes and health insurance premiums for self-employed individuals. These deductions directly lower your AGI, which can impact eligibility for other tax benefits.

Locating Your Adjusted Gross Income

After accounting for all income sources and “above-the-line” deductions, your AGI is calculated. This figure is reported on Line 11 of your federal income tax return, Form 1040. Tax preparation software or a tax professional will compute this amount based on the financial information you provide. Locating your AGI is important for verifying your identity when electronically filing future tax returns.