Hi Robert, I believe this may help explain: djusted gross income (AGI) is a United States tax term for an amount used in the calculation of an individual's income tax liability. AGI is calculated by taking an individual's gross income and subtracting the income tax code's enumerated deductions, and is an important benchmark determining certain other allowed benefits.
For example, most limitations on deductions or credits are determined based on either AGI or modified adjusted gross income (MAGI). MAGI is AGI modified by certain amounts specific to the given limitation.
Gross income includes wages, interest income, dividend income, income from certain retirement accounts, capital gains, alimony received, rental income, royalty income, farm income, unemployment compensation, and certain other kinds of income. AGI is the last number on the first page of the Form 1040, the standard U.S. income tax return form for individuals.
Modified adjustable gross income is the amount of income which determines how much can be deducted from an individual's IRA contribution. This is calculated by taking the individual's adjusted gross income and then adding certain items such as student-loan deductions, foreign income, foreign-housing deductions, IRA-contribution deductions and deductions for higher-education costs etc.
Hi Robert, I believe this may help explain: djusted gross income (AGI) is a United States tax term for an amount used in the calculation of an individual's income tax liability. AGI is calculated by taking an individual's gross income and subtracting the income tax code's enumerated deductions, and is an important benchmark determining certain other allowed benefits.
For example, most limitations on deductions or credits are determined based on either AGI or modified adjusted gross income (MAGI). MAGI is AGI modified by certain amounts specific to the given limitation.
Gross income includes wages, interest income, dividend income, income from certain retirement accounts, capital gains, alimony received, rental income, royalty income, farm income, unemployment compensation, and certain other kinds of income. AGI is the last number on the first page of the Form 1040, the standard U.S. income tax return form for individuals.
Modified Adjusted Gross Income includes following programs-
1) Hope Scholarship Tax Credit
2) Lifetime Learning Tax Credit
3) Student Loan Interest Deduction
4) Tuition and Fees Deduction
5) Traditional & Roth IRA eligibility and contribution levels
Modified adjustable gross income is the amount of income which determines how much can be deducted from an individual's IRA contribution. This is calculated by taking the individual's adjusted gross income and then adding certain items such as student-loan deductions, foreign income, foreign-housing deductions, IRA-contribution deductions and deductions for higher-education costs etc.