Adjusted gross income

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Adjusted gross income (AGI)

Gross income less allowable adjustments, which is the income on which an individual is taxed by the federal government.

Adjusted Gross Income

In U.S. tax, an individual's taxable income after all specific deductions, but not standard or itemized deductions. Adjusted gross income is used to calculate one's tax liability, as well as eligibility for certain social programs. For example, contributions to health savings accounts are not taxable. Thus, one removes the amount contributed to such an account from his/her gross income before calculating his/her tax liability.

adjusted gross income

The amount of taxable income that remains after certain allowed business-related deductions—such as alimony payments, contributions to a Keogh retirement plan, and in some cases, contributions to an IRA—are subtracted from an individual's gross income. Adjusted gross income and gross income will be the same for many taxpayers.

Adjusted gross income (AGI).

Your AGI is your gross, or total, income from taxable sources minus certain deductions.

Income includes salary and other employment income, interest and dividends, and long- and short-term capital gains and losses. Deductions include unreimbursed business and medical expenses, contributions to a deductible individual retirement account (IRA), and alimony you pay.

You figure your AGI on page one of your federal tax return, and it serves as the basis for calculating the income tax you owe. Your modified AGI is used to establish your eligibility for certain tax or financial benefits, such as deducting your IRA contribution or qualifying for certain tax credits.

Adjusted Gross Income (AGI)

Adjusted gross income equals gross income reduced by adjustments to income. This is the amount of income before subtracting exemptions and the standard deduction or itemized deductions.
References in periodicals archive ?
A Roth IRA may generally accept a conversion from a traditional IRA (but for tax years beginning prior to 2010, modified adjusted gross income cannot exceed $100,000).
The tax threshold has risen to $10,764 of adjusted gross income for single and married filing separate taxpayers, and $21,527 for married filing joint, surviving spouse and head of household taxpayers.
For example, most single people under 65 years old with no dependents would not need to file a state return until they have adjusted gross income of $11,698 or more.
The credit starts to phase out for taxpayers with adjusted gross incomes of $75,000 and up.
The credit will be phased out for taxpayers with adjusted gross incomes between $60,000 and $75,000.
The more than 14 million filers who earn adjusted gross incomes of $50,000-$74,999 while owning average investment assets of approximately $118,000 could on average increase their annual giving by 21%, from $1,322 to $1,600 per filer -- and under normal circumstances still see their wealth rise.
In addition, the credit is phased out for taxpayers with modified adjusted gross incomes above $75,000, with full phase-out at $115,000.
The new laws create two tax credits for educational expenses -- the Hope Scholarship credit and the Lifetime Learning credit -- but these credits are only fully available to single income earners with adjusted gross incomes of less than $40,000 and married couples filing jointly with adjusted gross incomes of less than $80,000.
A FAMILY TAX CREDIT OF $500 for each qualifying child would be available to families with adjusted gross incomes under #200,000.
For 1993 returns, taxpayers (1) whose modified 1993 adjusted gross incomes (AGIs) exceed their 1992 AGIs by more than $40,000 and (2) whose 1993 AGIs exceed $75,000 (subject to certain exceptions) cannot pay estimates based on last year's tax liability.
Taxpayers with current tax year adjusted gross incomes over $75,000 and current year incomes more than $40,000 higher than the previous year's were singled out and, in effect, required to make estimated tax payments equal to 90% of the current year's tax liability.
President Clinton campaigned on a pledge to raise the marginal tax rate to 36% (from 31%) for married taxpayers with adjusted gross incomes over $200,000 (for single taxpayers, the hurdle is $150,000).

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