Adjusted Gross Income

What does Adjusted Gross Income mean?

Adjusted gross income, or AGI, is the amount of a taxpayer's income from which exemptions and deductions are subtracted to determine the taxpayer's taxable income.

Adjusted gross income is calculated by subtracting from gross income the following amounts: unreimbursed business expenses, contributions to health savings accounts, moving expenses, half of self-employment tax, contributions to retirement accounts, alimony paid, college tuition and fee payments, and jury duty pay given to the taxpayer's employer.

Adjusted gross income is used as the basis for phasing out certain tax deductions, including contributions to Individual Retirement Accounts and the Earned Income Tax Credit.

(Tags - Tax Credits - tax debts - IRS )

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Personal Injury Lawyer

Personal injury lawyers generally handle tort laws cases and provide legal representation to claimants who claim to have been physically, psychologically, or financially injured due to the negligence of another person.

Category: Injury Law