An individual taxpayer’s federal Adjusted Gross Income (AGI) is their total gross income minus certain adjustments.
A taxpayer calculates their Federal AGI before subtracting the Standard Deduction, Itemized Deductions, and Qualified Business Income (QBI) Deduction.
A taxpayer will generally report the following items of gross income on page 1 of their Form 1040:
- Wages and Compensation reported on Form W-2 (Wage and Tax Statement)
- Taxable Interest
- Ordinary Dividends
- Taxable IRA Distributions
- Taxable Pensions & Annuities
- Taxable Social Security Benefits
- Capital Gains & Capital Losses
A taxpayer can report other gross income items and adjustments on Schedule 1 (Additional Income & Adjustments).
Taxpayers report their itemized tax deductions on Schedule A (Itemized Deductions), and they report their QBI deduction on Form 8995 (Qualified Business Income Deduction).