Form 1040 has no line labeled “net income.” If you’re trying to find where net income appears on Form 1040, the two closest equivalents are Adjusted Gross Income on Line 11 and Taxable Income on Line 15. Which one someone means depends on why they’re asking.1Internal Revenue Service. Form 1040 (2025)
Line 11: Adjusted Gross Income
AGI is the figure most people are reaching for when they say “net income” on a personal tax return. It sits on Line 11 of Form 1040 and is calculated by taking Total Income (Line 9) and subtracting a set of above-the-line adjustments listed on Schedule 1, Part II.2Internal Revenue Service. Definition of Adjusted Gross Income
Those adjustments include half of self-employment tax, Health Savings Account contributions, deductible traditional IRA contributions, student loan interest up to $2,500, and educator expenses, among others. Every eligible taxpayer can claim them; you don’t need to itemize.3Internal Revenue Service. 2025 Schedule 1 (Form 1040)
AGI is usually the right answer when a lender, financial aid office, health insurance marketplace, or state tax form asks for your income from your federal return. It’s also the number the IRS uses to gauge eligibility for most credits and deductions. Phase-outs for the Earned Income Tax Credit, Child Tax Credit, and education credits key off AGI or modified AGI, and the 3.8% Net Investment Income Tax kicks in when modified AGI exceeds $200,000 for single filers or $250,000 for joint filers.4Internal Revenue Service. Topic No. 559, Net Investment Income Tax Most states that collect income tax use federal AGI as the starting point for their own calculations.
One practical note. When you e-file, the IRS uses your prior-year AGI to verify your identity. You can find last year’s figure on Line 11 of your previous Form 1040, or pull it from your IRS Online Account or a free tax return transcript.5Internal Revenue Service. Adjusted Gross Income
Line 15: Taxable Income
Taxable Income on Line 15 is the number your federal tax rate actually applies to, which makes it the truest “net” income figure on the form. Getting there from AGI takes two more subtractions:
- Line 12 is your standard deduction or, if larger, your total itemized deductions from Schedule A.6Internal Revenue Service. Deductions for Individuals: The Difference Between Standard and Itemized Deductions, and What They Mean
- Line 13 is the Qualified Business Income deduction under Section 199A, worth up to 20% of qualified business income from a sole proprietorship, partnership, S corporation, or certain trusts. It’s available even if you take the standard deduction.7Internal Revenue Service. Instructions for Form 1040 (2025)
Line 14 adds those two together, and Line 15 subtracts the total from AGI. If the result is zero or negative, your taxable income is zero. You’d owe no federal income tax on that income, though self-employment tax and other levies on Schedule 2 may still apply.
Line 15 is the right answer when someone specifically wants to know the income you were taxed on, or when you’re checking which bracket applied to you.1Internal Revenue Service. Form 1040 (2025)
Line 24: Total Tax (A Different Kind of “Net”)
If “net income” in your mind means “what I actually kept after taxes,” neither Line 11 nor Line 15 answers that. The closest figure is your total tax liability on Line 24, which combines the tax calculated from your bracket on Line 16 with any additional taxes flowing in through Schedule 2, such as self-employment tax, the alternative minimum tax, early retirement withdrawal penalties, and household employment taxes.8Internal Revenue Service. Instructions for Form 1040 and 1040-SR (2025) Subtract Line 24 from Line 9 and you have a rough picture of what the federal return took out of your total income for the year.
Which Line to Give When Someone Asks for Your Net Income
Match the line to the request:
- A form or application asking for “adjusted gross income,” “AGI,” or “income from your federal return”: Line 11.
- The IRS asking for prior-year AGI to verify your e-filed return: Line 11 from last year’s 1040.
- A question about “the income you were taxed on” or how a bracket applied: Line 15.
- A question about your federal tax burden for the year: Line 24.
The form walks the three figures down in sequence. Line 9 is the gross starting point, Line 11 is AGI after above-the-line adjustments, and Line 15 is what’s left after the standard or itemized deduction and the QBI deduction. Each number is smaller than the one above it, and any of them can reasonably be called “net” depending on who’s asking and why.