Adjusted gross income

Also found in: Legal, Acronyms, Encyclopedia, Wikipedia.

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 ?
Filers can deduct those expenses only to the extent that they exceed two percent of their adjusted gross income.
There are lots of ways your practice or "company" can be used to lower your adjusted gross income.
2) The 1976 Act specified four income concepts for classifying tax returns: adjusted gross income (AGI), expanded income, AGI plus excluded tax preference items, and AGI less investment interest expense not in excess of investment income.
A deduction denied because it exceeds 30% of the individual's adjusted gross income may be carried over and treated as a contribution of capital gain property in each of the next five years.
13,727 Kentucky's average adjusted gross income per capita in 2001.
2) Her accountant tells her that only $5,520 of her $9,600 Social Security income is considered taxable--resulting in an adjusted gross income (for tax purposes) of $35,920.
Compared to the thresholds for individual taxpayers that are based on adjusted gross income, the threshold for trusts and estates is based on the highest tax bracket of those entities.
Size of adjusted gross income Nonrefundable education credit
Under the first tier, if modified adjusted gross income (adjusted gross income plus tax-exempt income, or MAGI) plus one-half of Social Security income exceeds a base amount, an individual must include in gross income the lesser of: (1) 50 percent of the benefit; or (2) 50 percent of such excess over the base amount ($32,000 for married couples filing joint returns, zero for married couples filing separately who lived together during any portion of the year, and $25,000 for all other taxpayers).
Certain deductions are subtracted from gross income to arrive at adjusted gross income (see Q 1423, Q 1424).
Currently, people with more than $500,000 in adjusted gross income from off-farm sources are barred from crop subsidies.

Full browser ?