If you reported self-employment business income on Schedule C, you would include that in your gross income as well.
This includes wages or salary from a job, bank account interest, stock dividends and rental property income. To determine your adjusted gross income, start with your gross income. 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.
Your AGI heavily affects what deductions and credits you’re eligible for in a tax year. Understanding Adjusted Gross Income (AGI)Īdjusted gross income (AGI) is a variation of your gross income that accounts for certain deductions that usually make it lower than your gross income. By contrast, gross income is the total amount of money you earn in a year before income taxes or other deductions are taken out. Because of this distinction, AGI is typically the foundation for calculating how much you’ll owe in taxes.
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