Adjusted Gross Income

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Adjusted Gross Income

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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
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.
If a taxpayer's modified adjusted gross income plus one-half of the Social Security benefits (including tier I railroad retirement benefits) received during the taxable year exceeds certain base amounts, then a portion of the benefits received must be included in gross income and taxed as ordinary 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.
* the excess of adjusted gross income over the amount of the highest regular income tax bracket in effect for such taxable year.
Size of adjusted gross income Nonrefundable education credit
Under the first tier, if modified adjusted gross income (adjusted gross income plus tax-exempt income, or MAGI) plus one-half of Social Security income exceeds a base amount, an individual must include in gross income the lesser of: (1) 50 percent of the benefit; or (2) 50 percent of such excess over the base amount ($32,000 for married couples filing joint returns, zero for married couples filing separately who lived together during any portion of the year, and $25,000 for all other taxpayers).

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