If you have more than one job or worked for multiple employers over the year, add all of these amounts (from Box 1 of each W-2) to determine your total gross income. Look at Box 1 of your W-2 for “Wages, tips, other compensation.” This represents your gross income from that particular job.Ģ. Your employer provides you with a W-2 that reports your annual earnings and withholdings for that tax year. Here’s a step-by-step process on how to calculate AGI from a W-2: Typically, the lower your AGI, the lower your taxable income, resulting in reduced taxes owed. In this article, we will guide you on how to perform this calculation using your W-2 form.Īdjusted Gross Income refers to the gross income minus specific deductions, such as IRA contributions, student loan interest, and unreimbursed business expenses. Understanding how to calculate AGI helps in determining your taxable income and making a correct tax filing. Fortunately, you can derive this number from the information provided in your W-2 form. When preparing your tax return, one essential figure you need to compute is your Adjusted Gross Income (AGI).
