Do above-the-line deductions reduce your AGI?

Above-the-line deductions reduce your AGI Your adjusted gross income (AGI) is the amount listed on the bottom line of page one of your income tax return. It includes your total income, including wages, business and rental income, capital gains, unemployment income, and so on.

How does a low AGI affect tax deductions & credits?

Your AGI heavily affects what deductions and credits you’re eligible for in a tax year. For example, if you have a low AGI, you’ll likely be able to claim more in deductions and credits than someone with a higher AGI. To determine your adjusted gross income, start with your gross income.

How do I determine my AGI?

To determine your AGI, these deductions are added together and then subtracted from your gross taxable income. Remember that these deductions are not the same as the deductions that you itemize. Itemized deductions (and the standard deduction) are dollar amounts that are deducted from your AGI.