Adjusted Gross Income (AGI)
Adjusted Gross Income (AGI) is a key tax term used to describe your total gross income minus specific deductions. It’s calculated on your federal income tax return before itemized or standard deductions, exemptions, and credits are taken into account. AGI includes wages, dividends, alimony, capital gainsThe profit that results from a disposition of a capital asset, such as stocks, bonds, or real estate, where the amount realized from the sale exceeds the purchase price…., business income, retirement distributions as well as other income minus deductions like student loan interest, alimony payments, and retirement contributions. Your AGI directly influences your eligibility for various tax credits and exemptions, including many social benefits and programs.