Meaning of adjusted gross income | Babel Free

Definitions

A taxpayer's total gross income minus specific deductions for things like business expenses, health savings account deductions, education expenses, and alimony payments, which is used to calculate taxable income by removing personal exemptions and itemized deductions.

Examples

“The 1976 Act added a preference for individuals for excess itemized deductions, i.e., certain itemized deductions in excess of 60 percent of adjusted gross income.”

“The individual taxpayer must divide allowed deductions between those for adjusted gross income and those from adjusted gross income because the amount of adjusted gross income is important in the determination of some deductions from adjusted gross income.”

“That deduction can be used to reduce her taxable income by $45,000 (30% of her adjusted gross income) each year for the current year and the next three tax years.”

“The credit begins to phase out for adjusted gross incomes (AGIs) over $252,150 and completely phases out at AGIs over $292,150. Both the credit and AGI limits are indexed for inflation.”

CEFR level