06/02/2026
Today's Learning Building Block = AGI (Adjusted Gross Income)
๐งพ Adjusted Gross Income (AGI)
Definition: Adjusted Gross Income (AGI) is your total income minus specific โabove-the-lineโ deductions such as IRA contributions, student loan interest, and half of self-employment tax. It is calculated on IRS Form 1040 and serves as the baseline for determining taxable income.
Why It Matters: Many credits and deductions phase out based on AGI, including:
Child Tax Credit
Earned Income Credit
Education Credits
Retirement contribution eligibility
Dr. Geno Commentary: AGI is your tax scoreboard.
The higher it goes, the more limited your options become. The lower it goes โ legally and strategically โ the more flexibility you create.
Business owners influence AGI through:
Deduction strategy
Retirement planning
Health insurance deductions
Entity elections
Tax filing records history. Tax planning shapes outcomes.
๐ Ready to control your numbers instead of reacting to them? Join our Skool community:
https://gbcfinancial.com/blog/f/agi-adjusted-gross-income