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.

References in periodicals archive ?
In order to receive the maximum deduction, a taxpayer must have modified adjusted gross income of less than USD65,000 or USD130,000 for joint filers.
However, there is a phase-out of this exclusion once modified adjusted gross income exceeds a designated amount (in 2010 for single taxpayers the phase-out is between $70,100 and $85,100; for joint tax return filers the phase-out is between $105,100 and $135,100).
A fraction is determined as follows: (a) the numerator is the excess of the taxpayer's modified adjusted gross income for 2010 over $70,100 (single or head of household) or $105,100 (married filing jointly; (b) the denominator is $15,000 (single or head of household), or $30,000 (joint return).
The credit is reduced by 2% of the taxpayer's modified adjusted gross income in excess of $75,000 ($150,000 for a joint return).
9) For 2001, the EIC for a tax year could not be more than the excess of (1) the earned percentage of the earned income amount, over (2) the phase-out percentage of so much of the modified adjusted gross income (or if greater, earned income) of the individual for the tax year as exceeds the phase-out amount.
In addition, individuals with modified adjusted gross income below certain levels (for 2015, $61,000 if married filing jointly, $45,750 if head of household, $30,500 if single) may be eligible to claim a Saver's Tax Credit for their contributions.
The "non-income" categorization of the distributions also means there is no effect on how much clients receive in Social Security benefits, pay in capital gains or Medicare premiums, all of which are impacted by Adjusted Gross Income or Modified Adjusted Gross Income, and commonly impacted by other classes of retirement assets.
This tax applies to individuals with modified adjusted gross income in excess of $200,000 for single return filers and $250,000 for joint filers.
8 percent of the smaller of net investment income or the excess of modified adjusted gross income (adjusted gross income increased by certain foreign earned income) over $250,000 for a married couple or surviving spouse, $125,000 for a married individual filing a separate return, or $200,000 for anyone else.
8% of the lesser of two amounts: net investment income or the excess of modified adjusted gross income (AGI) over a threshold amount.
Contribution limits are based on modified adjusted gross income (gross income after itemized deductions).

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