Help me calculate my AGI for 2023 tax filing - confused with all the numbers!

7 Thanks for breaking this down! Quick question - I forgot to mention I also paid $4,200 in health insurance premiums through my employer's plan. Does that reduce my AGI too? And for the freelance work, can I deduct the new laptop I bought primarily for those projects ($1,300)?

12 Health insurance premiums paid through your employer's plan are typically pre-tax, meaning they've already been excluded from your W-2 wages, so you don't need to deduct them again when calculating AGI. Check your last pay stub of 2023 - your reported wages should already reflect this reduction. For your laptop purchase, yes, that would be deductible as a business expense on Schedule C if it was primarily for your freelance work. You'd report your $4,250 freelance income, then deduct the $1,300 laptop as a business expense, which would bring your net Schedule C income down to $2,950. This lower amount would then be used in your AGI calculation, potentially bringing your AGI down to about $56,000 ($58,700 + $2,950 - $3,500 - $2,100).

5 Does taxr.ai handle self-employment income too? I have a side business and figuring out what expenses qualify and how they affect my AGI has been a nightmare.

16 I've tried several tax tools before and they always missed something or confused me more. How accurate is taxr.ai with more complicated situations like rental income or stock sales?

19 Yes, it handles self-employment income really well. You can upload your income records and categorize expenses, and it shows exactly how each one affects your Schedule C and ultimately your AGI. It even suggests potential deductions you might have missed based on your business type. For more complicated situations like rental income or stock sales, I found it surprisingly accurate. It correctly calculated my capital gains from several stock transactions and properly depreciated my rental property assets. The platform even flagged a potential issue with my cost basis calculation that would have caused problems if I'd filed without fixing it.

3 Wait, how does this actually work? The IRS phone lines are notoriously impossible to get through. Are you saying this service somehow jumps the queue or something?

8 Sorry but this sounds like a scam. Why would anyone pay for something to call the IRS when you can just call them yourself? I've always gotten through eventually.

10 It doesn't jump the queue exactly - what it does is automate the waiting process. You enter your phone number and what you need help with, then their system calls the IRS and navigates all the annoying menu prompts and holds your place in line. When they finally reach an agent, you get a call back and are connected directly. No need to sit with your phone on speaker for hours. I was skeptical too but I literally wasted two full afternoons trying to get through myself. With Claimyr, I was able to go about my day and got the call when an agent was actually available. The time savings alone was worth it to me, especially during tax season when the wait times are ridiculous.

1 That's a really good point! I think I need to calculate my MAGI too since I'm right on the edge for some education credits. Is there a simple way to figure out what gets added back to AGI to determine MAGI? My tax software is confusing me.

14 The main items that get added back to your AGI to calculate MAGI include student loan interest deductions, tuition and fees deduction (though this has expired), half of self-employment tax, excluded foreign income, non-taxable Social Security benefits, and IRA contribution deductions. For education credits specifically, your MAGI calculation would add back any foreign income exclusion, foreign housing exclusion/deduction, and excluded income from Puerto Rico or American Samoa. The student loan interest deduction actually doesn't get added back for education credit purposes, which is good news if you're on the edge of qualifying.

4 But wouldn't that only work if your income sources and deductions stayed pretty much the same from year to year? The OP mentioned this is their first year with multiple income sources.