Adjusted Gross Income

Katelynn Minott, CPA & CEO June 23rd, 2026

Adjusted gross income (AGI) is your total income subject to U.S. tax after certain adjustments are subtracted, but before the standard or itemized deduction. Your AGI appears on line 11 of Form 1040.

Why it matters for U.S. expats

Your AGI can affect your eligibility for tax credits, deductions, retirement contributions, and other tax benefits. It may also be used to verify your identity when you file electronically.

Expats must include applicable worldwide income when calculating AGI. Claiming the Foreign Earned Income Exclusion may reduce AGI, although some calculations use modified adjusted gross income and add the excluded income back.

Common questions

1. How is adjusted gross income calculated?

Add your taxable income, including applicable foreign income, and subtract eligible adjustments to income. These adjustments may include deductible IRA contributions, student loan interest, and part of your self-employment tax.

2. Where can I find my AGI?

Your AGI appears on line 11 of Form 1040. You can find a previous year’s AGI on that return, through your IRS Online Account, or on a tax return transcript.

3. Does foreign income count toward AGI?

Yes. U.S. citizens and resident aliens include taxable worldwide income when calculating AGI, even when the income was earned or paid abroad.

4. Does the Foreign Earned Income Exclusion reduce AGI?

Yes. Qualifying income excluded using Form 2555 reduces AGI. However, the excluded amount may be added back when calculating MAGI for certain credits, taxes, or retirement contribution rules.

5. What is the difference between AGI and MAGI?

AGI is calculated after eligible adjustments to income. Modified adjusted gross income starts with AGI and adds back certain amounts, depending on the tax benefit or rule being applied.

When to get help

Consider getting specialist help if:

You receive income from several countries or sources.
You are unsure which foreign income must be included.
You claim the Foreign Earned Income Exclusion.
You need to calculate MAGI for a credit, tax, or retirement contribution.
Your AGI does not match IRS records when you try to file electronically.

Bright!Tax can calculate your income correctly, apply the relevant expat exclusions and credits, and prepare your U.S. return. Get started with Bright!Tax.

Official sources

Reviewed by

Katelynn Minott, CPA & CEO

Last reviewed

June 2026

Related terms:

Additional Child Tax Credit