Adjusted gross income (AGI) is a
United States tax term for an amount used in the calculation of an individual's
income tax liability. AGI includes all
gross income adjusted by certain allowed 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.
See more at Wikipedia.org...
The process when a company extracts from its financials, all debt service along with owner's compensation. Example: Used to determine what a buyer would realize under his ownership if all conditions were equal.
Taxable income after all allowable deductions are made, such as IRA deductions, moving expenses, self-employment taxes and health insurance, Keogh retirement plans, and alimony paid.
Free Download Now!
