Checking your gross income involves reviewing the total amount of money you earned from all sources before any deductions, taxes, or adjustments are taken out. While often confused with Adjusted Gross Income (AGI), gross income is the foundational figure representing your total earnings.
Understanding Gross Income
Your gross income typically includes wages, salaries, tips, commissions, business income, rental income, interest, dividends, and other forms of taxable income. It's the full amount you've been paid or have earned before any subtractions.
How to Check Your Gross Income
You can typically find your gross income on several financial documents:
- Pay Stubs: For employees, your pay stubs (or earnings statements) show your gross pay for each pay period and often year-to-date gross earnings.
- W-2 Forms: If you are an employee, your annual Wage and Tax Statement (Form W-2) reports your total gross wages earned from each employer in Box 1, "Wages, tips, other compensation."
- 1099 Forms: If you are an independent contractor, freelancer, or receive certain other types of income (like interest or dividends), you'll receive various 1099 forms (e.g., Form 1099-NEC for non-employee compensation, Form 1099-MISC for miscellaneous income, Form 1099-INT for interest income). These forms report your gross earnings from specific sources.
- Business Records: If you are self-employed, your gross income is recorded in your business's accounting ledgers, invoices, and bank statements. You calculate your gross income by totaling all revenues before deducting business expenses.
- Bank Statements: While not a primary source, your bank statements can help reconcile deposits received against your other income documents.
Gross Income vs. Adjusted Gross Income (AGI)
It's important to differentiate between gross income and Adjusted Gross Income (AGI). While gross income is your total earnings before any deductions, AGI is a step further down the line, calculated by taking your gross income and subtracting specific deductions allowed by the IRS, such as contributions to traditional IRAs, student loan interest, or certain educator expenses. AGI is a crucial figure used to determine your eligibility for various tax credits and deductions.
How to Check Your Adjusted Gross Income (AGI):
Your Adjusted Gross Income (AGI) is a specific figure primarily found on your tax return documents or through IRS services.
- IRS Form 1040: Your AGI appears on Internal Revenue Service (IRS) Form 1040, line 11. This is the most common place to find your AGI from a filed tax return.
- IRS Online Account: If you don't have a physical copy of your tax return, you can review your AGI online. You can access this information on the “Tax Records” tab of your IRS online account.
The table below summarizes the key differences and where to find each type of income:
| Income Type | Definition | Where to Check |
|---|---|---|
| Gross Income | Total earnings from all sources before any deductions or adjustments. | Pay stubs, W-2 forms, 1099 forms (1099-NEC, 1099-MISC, 1099-INT, etc.), business ledgers (for self-employed individuals). |
| Adjusted Gross Income (AGI) | Gross income minus specific above-the-line deductions allowed by the IRS. | IRS Form 1040, Line 11; IRS online account (under the "Tax Records" tab if you don't have a copy of your tax return). |
Understanding both your gross income and your Adjusted Gross Income (AGI) is vital for financial planning, tax purposes, and applying for various programs or loans, as different entities may require one figure over the other.
