How Do You Find AGI From Last Year for Clients With Multiple Income Streams

As a financial advisor, understanding a client’s prior-year AGI (Adjusted Gross Income) is essential. Knowing how do you find AGI from last year helps you:

• Verify eligibility for IRA and Roth IRA contributions
  
  

• Determine phase-outs for tax credits like the EITC or Child Tax Credit
  
  

• Plan charitable giving, retirement contributions, and deductions
  
  

• Ensure compliance and prevent IRS errors
  
  

Clients with multiple income streams, wages, freelance income, and investments require careful attention to capture all relevant data.

Step 1: Gather All Income Documents

To accurately determine last year’s AGI, start by collecting all necessary records:

• W-2s from all employers
  
  

• 1099 forms for freelance, investment, or other income
  
  

• Previous tax returns (Form 1040 and relevant schedules)
  
  

• Any supporting documents for deductions or adjustments
  
  

Ensuring completeness prevents miscalculations and missed planning opportunities.

Step 2: Locate AGI on the Previous Year’s Tax Return

The AGI is reported on Form 1040:

• Check Line 11 on Form 1040 (or 1040-SR) for the prior year
  
  

• For clients with amendments, review Form 1040-X to confirm adjusted AGI
  
  

• Cross-reference with supporting schedules if income streams are complex
  
  

Verifying AGI from the correct line ensures accurate calculations for contribution limits and credits.

Step 3: Use IRS Transcripts When Needed

If clients don’t have their prior-year return, request an IRS transcript:

• Tax Return Transcript: Shows line-by-line AGI and income details
  
  

• Account Transcript: Displays payments, refunds, and balances
  
  

• Wage and Income Transcript: Confirms all reported W-2s, 1099s, and other income
  
  

Advisors can submit Form 4506-T on behalf of clients to access transcripts for the past 10 years.

Step 4: Verify All Income Streams Are Included

For clients with multiple income sources, ensure AGI reflects:

• Wages from all employers
  
  

• Self-employment income and business earnings
  
  

• Taxable investment income
  
  

• Any other adjustments reported on Form 1040
  
  

Double-checking prevents errors that could affect deductions, credits, or retirement contribution limits.

Step 5: Apply AGI in Client Planning

Once you’ve confirmed the prior-year AGI, use it to guide tax and financial strategies:

• Retirement contributions: Determine eligibility and contribution limits for IRAs and HSAs
  
  

• Roth conversions: Plan timing and amounts to stay within income limits
  
  

• Credits and deductions: Verify eligibility for EITC, child tax credit, and charitable deductions
  
  

• Future planning: Use trends in AGI to anticipate tax planning needs for the current year
  
  

Prior-year AGI becomes a foundational tool for proactive, compliant planning.

Common Mistakes Advisors Should Avoid

Even experienced advisors can make mistakes when finding last year’s AGI:

• Using incomplete or outdated tax returns
  
  

• Overlooking income from side businesses or freelance work
  
  

• Ignoring amendments that adjusted AGI
  
  

• Failing to verify against IRS transcripts when client records are missing
  
  

Avoiding these mistakes ensures accuracy and maximizes client benefits.

Final Thoughts

Understanding how do you find AGI from last year is more than a technical step; it’s a strategic advantage for advisors working with clients who have multiple income streams. Accurate AGI verification allows you to optimize retirement contributions, credits, and deductions while maintaining compliance.

Turn last year’s numbers into actionable strategies. Let’s talk and ensure your client’s AGI is fully leveraged for smarter tax planning.

Disclaimer: This material is provided for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA for guidance on the specific tax situation.