Adjusted gross income (AGI)

AGI is what you get when you start with your total income—wages, self-employment income, interest, dividends and other sources—and subtract specific deductions like contributions to a traditional IRA or student loan interest.

AGI matters for many benefits programs. For example, SNAP (the Supplemental Nutrition Assistance Program) looks at your gross income (before deductions), while tax credits like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) use your AGI to figure out what you qualify for. Medicaid and other health programs also use income limits that may refer to AGI or gross income depending on the program and state.

You can find your AGI on your tax return, or you can calculate it if you haven't filed yet. When you apply for benefits, be ready to explain your income from all sources over the past month or year, depending on what the program asks for.