(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 taxpayer whose modified adjusted gross income
plus one-half of his Social Security benefits exceed a base amount is required to include in gross income the lesser of (a) 50% of the excess of such combined income over the base amount, or (b) 50% of the Social Security benefits received during the taxable year.
$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.
Because the phase-outs of both the exemptions and deductions depend on adjusted gross income
, taxpayers should attempt to maximize their deductions from gross income to minimize AGI.
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
Prior year minimum tax credit
For example, the taxable benefit would equal $8,550 for a married couple filing jointly who had Social Security benefits of $14,000, adjusted gross income
of $37,000 and tax-exempt interest of $3,000:
Generally, an individual is allowed a charitable deduction of up to 50% of his adjusted gross income
for any contribution (other than certain property, see Q 1323) to: churches; schools; hospitals or medical research organizations; organizations that normally receive a substantial part of their support from federal, state, or local governments or from the general public and that aid any of the above organizations; federal, state, and local governments.
Currently, people with more than $500,000 in adjusted gross income
from off-farm sources are barred from crop subsidies.
The issue on this appeal to the Second Circuit is whether investment advice fees inurred by a trust (T) are fully deductible in calculating adjusted gross income
(AGI) under Sec.
THE Bureau of Economic Analysis (BEA) annually publishes a comparison of BEA's measure of personal income and the Internal Revenue Service (IRS) measure of adjusted gross income
(AGI); both are widely used measures of household income.