AGI

AGI stands for Adjusted Gross Income. It is the line on the 1040 that captures your household's income after a short list of adjustments (retirement contributions, student loan interest, half of self-employment tax, a few others), but before the standard or itemized deduction is applied. AGI is the number the IRS uses as the base for several thresholds, including the 7.5 percent medical floor on Schedule A.

For most W-2 households, AGI is roughly the wages plus other income (interest, dividends, capital gains, side income), minus the few adjustments above. The exact figure shows up on a specific line of the 1040 once the return is filed.

The reason AGI matters for the gluten-free premium is mechanical. The medical-expense line on Schedule A only counts dollars above 7.5 percent of AGI. See AGI floor for the math and an example. A household with a lower AGI hits the floor sooner and a larger share of medical spending counts; a higher-AGI household needs more medical spending before the line starts moving.

You enter your AGI threshold in Gluten Hero Settings so the Insights tab can show how close the year-to-date medical total is to the floor. The number is yours to set; Gluten Hero does not calculate AGI for you. Households that have not filed yet can use last year's AGI as a working estimate, or pull a projection from their tax-prep software.

For the full Schedule A walkthrough, including how AGI enters the calculation, read What Publication 502 actually says about celiac.