The IRS changed my adjusted gross income. whats the difference from adjusted gross income & what I made?

Your adjusted gross income is amount of your income that is considered taxable. It's the amount of income after your deductions. For example, if you paid any interest on student loans that amount would be deducted from your gross income, the amount left over is your AGI.

If you filed a 1040, it's the number on the bottom of the first page and the top of the second page. It's LESS than your actual earned income, because it's been adjusted. Interest income is added ind, other items are subtracted, to come up with the basic income on which you'll be taxed, after a few more subtractions on the second page of your return. Did you forget to include some interest income?.

If you filed a paper return, check your math. The IRS adds the numbers again and if you made a mistake, they change it.

Later in the year, the IRS will compare what you reported on your tax return with what your payers reported. If you left income off, they will add it back in and adjust your AGI accordingly.

Your AGI is an intermediate number used in figuring your taxes and is often used to determine the deductibility of certain items or eligibility for certain credits. You start with your total income and subtract certain above-the-line items such as retirement contributions, moving costs, student loan interest, alimony paid, etc.

You need to figure your AGI before you can deduct medical expenses because they are subject to a 7.5% AGI limitation. Also, some Miscellaneous deductions are limited to a 2% AGI limitation.

Exemptions and deductions (itemized or standard) are then subtracted to arrive at your taxable income. Your taxable income then determines what your tax will be.

For most people, it's the same. Adjusted Gross Income has certain deductions subtracted, like alimony paid, half of self-employment tax, and student loan interest, if you have any of those - there are several other items that might be subtracted from what you made to get AGI.