Your AGI is also the basis of the benefits, tax credits, deductions and social programs for which you're eligible. You can report your AGI on IRS Form 1040. Your AGI is one of the most important figures on a tax return and helps the IRS determine how much you owe in taxes.
Calculating your AGI allows you to see how much of your income is taxable after certain deductions. Adjusted gross income is your gross income subtracted by deductions and adjustments.
