How to calculate adjusted gross income: in the United States, add your income to reach total income (Form 1040 line 9), then subtract the adjustments on Schedule 1. Canada's nearest figure is net income (line 23600) and India's is gross total income. All three sit roughly before the main allowance step, but none matches the others line for line.
How the three figures compare
| Question | United States | Canada | India |
|---|---|---|---|
| Key figure | AGI | Net income | Gross total income, then total income |
| Built as | Total income less adjustments | Total income less deductions | Income under the heads, less deductions |
| Main uses | Start of taxable income; modified AGI for phase-outs | Credits, benefits, benefit repayments | Basic exemption, slabs, rebate |
| Last year's figure | Online account, prior return, transcript | Return and notice of assessment | Filed return, intimation, portal records |
How to calculate adjusted gross income in the United States
AGI is line 9 minus line 10, shown on line 11a of the 2025 Form 1040 (as of October 2026 IRS web pages still say line 11). Taxable income then subtracts the standard or itemized deduction (line 12e), the qualified business income deduction (13a) and Schedule 1-A deductions (13b). Modified AGI starts at AGI and adds back items that differ by tax benefit.
Common adjustments, with 2025 limits: HSA $4,300 self-only or $8,550 family; half of self-employment tax; self-employed health insurance and retirement plans; early-withdrawal penalty; IRA deduction $7,000 (plus $1,000 at 50 or over); student-loan interest up to $2,500; alimony only under agreements made by December 31, 2018; moving expenses only for the Armed Forces and intelligence community. Self-employment tax is 92.35% of net profit times 15.3%. For senior deductions see senior tax breaks compared.
How are net income and taxable income built in Canada?
Net income (line 23600) is total income (line 15000) minus the deductions on lines 20700 to 23500. A negative result shows as 0, but keep the real figure. Taxable income (line 26000) is net income minus line 25700, the total of lines 24400 to 25600. Net income drives non-refundable credits, the Canada child benefit, the Canada Groceries and Essentials Benefit and social-benefit repayments, and your spouse's net income is reported too. The 2025 basic personal amount is $16,129 at net income of $177,882 or less, falling to $14,538 above $253,414. See credits, benefits and deductions.
How are gross total income and total income built in India?
Gross total income (GTI) is income under the heads after set-offs and before Chapter VI-A deductions (Chapter VIII in the 2025 Act). Total income is GTI minus those deductions. The default regime bars most of them, while the old regime allows Section 80C (cap Rs 1.5 lakh) and, for seniors, Section 80TTB (up to Rs 50,000). FY 2025-26 falls under the 1961 Act; the 2025 Act applies from tax year 2026-27. For assessment year 2026-27 the default-regime rebate is up to Rs 60,000 if total income is Rs 12 lakh or less, and the old-regime rebate is Rs 12,500 if it is Rs 5 lakh or less. Your Chartered Accountant confirms current provisions.
Where do I find last year's number?
- United States: your IRS online account tax records, your prior return or a free transcript. E-filing asks for prior-year AGI, a prior-year Self-Select PIN or an IP PIN; first-time filers, or those whose prior return is unprocessed, enter $0. A 2026 return uses 2025 AGI.
- Canada: your return and notice of assessment in your CRA account. Use the assessed figure if it differs from what you filed.
- India: the filed return and the intimation on the e-filing portal; see AIS and Form 26AS.
A worked example (invented numbers)
Priya in Aurora has 2025 wages of $64,000, interest of $420 and consulting profit of $9,000: total income $73,420. Adjustments are half of self-employment tax ($636), student-loan interest ($1,400) and an HSA contribution ($2,000), together $4,036. AGI is $69,384; after the $15,750 standard deduction, $53,634 remains before other deductions.
Her brother Rohan in Mississauga has 2025 employment income of $82,000, interest of $600 and a taxable capital gain of $3,000: total income $85,600. An RRSP deduction and FHSA deduction of $10,000 give net income of $75,600. A $5,000 loss carried forward (lines 24400 to 25600) leaves taxable income of $70,600.
Their mother in Pune, 63 and a resident, has FY 2025-26 pension of Rs 4,20,000 and interest of Rs 1,80,000. Under the old regime, after the Rs 50,000 standard deduction, GTI is Rs 5,50,000; Section 80C of Rs 1,50,000 and 80TTB of Rs 50,000 leave total income of Rs 3,50,000. Under the default regime the standard deduction is Rs 75,000, so total income is Rs 5,25,000.
Mistakes and cross-border traps
- Calling taxable income "AGI", or using the wrong year or line.
- Assuming the three taxable-income figures mean the same thing; they do not.
- Ignoring that US modified AGI for the senior deduction adds back excluded foreign income.
- Mixing years: India's financial year runs April to March. See income tax systems compared.
What we do
We compute AGI and the U.S. return from your Canadian and Indian figures and coordinate with your Canadian CPA and Indian Chartered Accountant, who compute net income and total income under their laws. We do not prepare Canadian or Indian returns. See the Form 1040 roadmap and the tax questions hub.
Frequently asked questions
Is AGI the same as taxable income?
No. Taxable income is AGI minus the standard or itemized deduction and other deductions.
Is Canadian net income the same as AGI?
It is the closest match, but the lines and uses differ.
What if I cannot find last year's AGI to e-file?
Check your online account, prior return or a transcript. First-time filers enter $0.
Does India use AGI?
No. It uses gross total income and total income.
Official sources
- IRS: Adjusted gross income
- IRS: Form 1040 (2025)
- IRS: Modified adjusted gross income
- CRA: Line 23600, net income
- CRA: Line 26000, taxable income
- CRA: Line 30000, basic personal amount
- Government of India: Income-tax Act, 2025 (Gazette copy)
- Income Tax Department of India: Tax rates
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.