There are lots of ways your practice or "company" can be used to lower your
adjusted gross income. For example, the retirement plan in your company is funded with tax deductible dollars.
[A5] Some income deferrals and accelerated expense deductions may also be involved in income or losses from rental property, from royalties, from partnerships, and from S Corporations, only the net amounts of which are included in
adjusted gross income.
$33,349 Connecticut's average per capita
adjusted gross income in 2001.
Their income and tax bill was slightly lower than the previous year, when they reported $856,056 in
adjusted gross income and paid $268,719 in federal income taxes.
The publication also explains that "You can deduct only the amount of your medical and dental expenses that are more than 7.5 percent of your
adjusted gross income. This means that you must subtract 7.5 percent of your
adjusted gross income from your medical expenses to figure your allowable medical expense deduction."
The latest data show that in 1997, taxpayers reporting over $200,000 in adjusted gross income--about 1.3 percent of all tax filers--accounted for 19.7 percent of all
adjusted gross income that taxpayers reported.
The DASTM gain is to be allocated in computing
adjusted gross income before the allocation of the related-person interest expense.
The personal and dependency exemptions are phased out under Code Section 151 (d)(3) by reducing the deductions by 29% for each $2,500 ($1250 for a married taxpayer filing separately) of
adjusted gross income (or part of) in excess of a threshold.
Size of
adjusted gross income Nonrefundable education credit