What Is Adjusted Gross Income?
By: Shelley Elmblad - March 26, 2018
Adjusted Gross Income (AGI) is gross income minus tax deductions that are allowable whether or not you itemize deductions when you file your tax returns.
- Some business expenses, such as supply costs, gas mileage or equipment rental fees
- Some moving expenses
- College tuition or student loan interest
- Contributions to certain retirement accounts
- Penalties from financial institutions for early withdrawal of savings
- Healthcare savings account deductions
- Jury duty pay sent directly to the juror's employer
- Alimony payments
- Deduction for half the self-employment tax
- SEP-IRA, SIMPLE IRA and 401(k) deductions for the self-employed
** Disclaimer Required by IRS Circular 230** Unless otherwise expressly approved in advance by the undersigned, any discussion of federal tax matters herein is not intended and cannot be used 1) to avoid penalties under the Federal tax laws, or 2) to promote, market or recommend to another party any transaction or tax-related matter addressed.