Adjusted Gross Income - AGI
Barron's Finance & Investment Dictionary:
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Adjusted Gross Income - AGI
income on which an individual or couple computes federal income tax. AGI is determined by subtracting from gross income any unreimbursed business expenses and other allowable adjustments—for example, individual retirement accounts, SEP and Keogh payments, and alimony payments. Other adjustments include forfeiture of interest penalties because of premature withdrawals from a certificate of deposit; capital loss deductions up to $3,000; rent and royalty expenses; 50% of self-employed tax liability; health insurance deductions for the self-employed; and net operating losses. Other adjustments include student loan interest; jury duty pay turned over to your employer; moving expenses; health savings account contributions; tuition and fees deductions; and hybrid vehicle deductions. AGI is the individual’s or couple’s income before itemized deductions such as medical expenses, state and local income taxes, and real estate taxes. Once AGI exceeds certain income thresholds detailed in the tax code, some itemized deductions are disallowed.
For example, for those married couples filing jointly in 2009 with adjusted gross incomes of more than $159,950, itemized deductions are reduced by 3% of the amount by which the AGI exceeds $159,950.
These thresholds are adjusted upward annually and the phaseout of exemptions will be gradually eliminated by 2010.
For example, for those married couples filing jointly in 2009 with adjusted gross incomes of more than $159,950, itemized deductions are reduced by 3% of the amount by which the AGI exceeds $159,950.
These thresholds are adjusted upward annually and the phaseout of exemptions will be gradually eliminated by 2010.
| Adjusted Exercise Price, Adjusted Debit Balance (ADB) | |
| Adjustment Bond, Adjustment Date |
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Adjusted Gross Income - AGI
West's Encyclopedia of American Law:
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Adjusted Gross Income
This entry contains information applicable to United States law only.
The term used for income tax purposes to describe gross income less certain allowable deductions such as trade and business deductions, moving expenses, alimony paid, and penalties for premature withdrawals from term savings accounts, in order to determine a person's taxable in- come.
The rules for computing adjusted gross income for federal income tax may differ from the rules in a state that imposes a state income tax.\
Investopedia Financial Dictionary:
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Adjusted Gross Income - AGI
A measure of income used to determine how much of your income is taxable. Adjusted gross income (AGI) is calculated as your gross income from taxable sources minus allowable deductions, such as unreimbursed business expenses, medical expenses, alimony and deductible retirement plan contributions.
Also referred to as "net income".
Investopedia Says:
Your AGI is figured on Page 1 of your federal tax return, and it is used to establish eligibility for financial benefits such as IRA contribution deduction limits and social security benefits.
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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West's Encyclopedia of American Law
West's Encyclopedia of American Law. Copyright © 1998 by The Gale Group, Inc. All rights reserved.
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