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Adjusted Gross Income

   Also found in: Financial, Acronyms, Encyclopedia, Wikipedia 0.01 sec.

The term used for Income Tax purposes to describe gross income less certain allowable deductions such as trade and business deductions, moving expenses, Alimony paid, and penalties for premature withdrawals from term savings accounts, in order to determine a person's taxable income.

The rules for computing adjusted gross income for federal income tax may differ from the rules in a state that imposes a state income tax.



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The tax credit amount is phased out for buyers with higher modified adjusted gross income and zeroes out at $95,000 (single) or $170,000 (married).
Currently, people with more than $500,000 in adjusted gross income from off-farm sources are barred from crop subsidies.
In their joint return, the president and his wife declared an adjusted gross income of 2,656,902 dollars and paid 855,323 dollars in federal income tax, as well as 77,883 dollars in Illinois state income taxes.
 
 
 
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