Adjusted Gross Income - AGI


DEFINITION of '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."


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BREAKING DOWN 'Adjusted Gross Income - AGI'

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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  1. What are some good free online calculators for AGI (adjusted gross income)?

    Both and offer free online calculators for figuring adjusted gross income, or AGI. Calculations ... Read Full Answer >>
  2. What is the difference between AGI (adjusted gross income) and net income?

    Adjusted gross income, or AGI, is often referred to as "net income," although the two are not necessarily the same thing. ... Read Full Answer >>
  3. What is the difference between MAGI (modified adjusted gross income) and adjusted ...

    Calculating personal income tax correctly involves understanding two important tax terms: adjusted gross income (AGI) and ... Read Full Answer >>
  4. What assets are taxable and what assets are not taxable?

    Most types of income are taxable by the Internal Revenue Service (IRS). In fact, all income is taxable unless it is specifically ... Read Full Answer >>
  5. How can I avoid paying taxes on my Social Security income?

    Nearly 90% of individuals over age 65 rely on Social Security income to pay for a large portion of living expenses throughout ... Read Full Answer >>
  6. What are the differences among gross income, adjusted gross income and modified adjusted ...

    Taxpayers can ease the pain of preparing tax returns simply by knowing the Internal Revenue Service's (IRS) definitions of ... Read Full Answer >>
  7. How are Simplified Employee Pension (SEP) IRAs taxed?

    Simplified employee pension individual retirement accounts are tax-deferred retirement savings plans designed to allow business ... Read Full Answer >>
  8. Do IRA contributions reduce average gross income (AGI)?

    IRA contributions to a traditional IRA reduce the IRA AGI or adjusted gross income because the qualifying contribution is ... Read Full Answer >>

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