Adjusted gross income
Call it Adjusted gross income. Call it AGI. Call it the most interesting number on your annual tax return. Adjusted gross income is the amount of money on which you must pay federal income taxes.
To get your adjusted gross income, start with your gross income, then subtract government-approved deductions such as alimony, unreimbursed business expenses, and contributions to retirement plans. (This calculation does not include itemized deductions.) Congratulations, you've successfully adjusted your gross income for use by the IRS and other organizations.
Related Fool Articles
Recent Mentions on Fool.com
- Capital Gains Tax: How to Avoid It and Fund an Early Retirement
- Obamacare: How $1 of Extra Income Could Cost Boomers Up to $15,000 Each Year
- 4 Expenses That Can Blow Your Retirement Budget
- Calculate Your 2014 Tax Refund Now
- What Is the Capital Gains Tax?
- Is This Student Loan Debt Collection Tactic Out of Control?