AGI
Definition
Adjusted gross income (AGI) is a number used to determine your federal income tax. AGI is your gross income minus deductions. Gross income includes wages, dividends, business profits, income from rental property and interest. Deductions include IRA contributions, SEP contributions, SIMPLE contributions, Keogh contributions, health insurance contributions (for self employed persons), trade or business expenses, depreciation on rental property, losses from sales of property, alimony payments, medical savings account contributions, moving expenses and charitable cash contributions. Note that AGI does not include standard or itemized deductions or personal exemptions. This figure appears on IRS Forms 1040, 1040A, and 1040EZ. Adjusted gross income level affects your eligibility for various types of retirement accounts, including Roth IRAs and Education IRAs.
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