adjusted gross income investment & finance definition
The amount used in the calculation of an
individual or couple’s income tax liability after deductions, such as IRA
contributions, half of self-employment taxes, and health insurance and alimony
payments, have been subtracted. AGI is income before the standard or itemized
deductions or personal exemptions are subtracted.
See adjusted gross income in Wall Street Words
The amount of taxable income that remains after certain allowed business-related deductions—such as alimony payments, contributions to a Keogh retirement plan, and in some cases, contributions to an IRA—are subtracted from an individual's gross income. Adjusted gross income and gross income will be the same for many taxpayers.
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