Adjusted Gross Income - AGI

What Does Adjusted Gross Income - AGI Mean?
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".

Investopedia explains 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.

Related Terms

Accumulated Earnings Tax
Estimated Tax
Gross Earnings
Gross Profit
Income Tax
Itemized Deduction
Married Filing Jointly
Personal Income
Statutory Employee
Taxable Income
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