<p>correct me if I'm wrong:</p>
<p>AGI is Earned income from work PLUS interest & dividends
Earned income from work is ONLY the wages (your W-2 line 1 )</p>
<p>worksheet B - If you have money withheld (BEFORE taxes are paid) that go to a retirement account. Ie you make 50K at year and put 10% in retirement. You have 5K of tax deferred savings.</p>