AGI effects on your taxes
The amount of your AGI affects how you can use numerous credits and exemptions. Your AGI affects the amount you can claim for the dependent care credit, credits for the elderly or permanently disabled, the adoption credit, the child tax credit, the Hope & Lifetime Learning credits, and the earned income credit. Many deductions phase out or disappear altogether if you have an AGI above certain limits. Deductions affected by your AGI include the following:
• Total itemized deductions
• Miscellaneous itemized deductions
• Mortgage insurance premiums
• Qualified motor vehicle taxes
• Charitable contributions
• Medical deduction allowance