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Adjusted gross income is one of the most important numbers when it comes to taxes. While your taxable income is used to determine how much tax you owe on your federal income tax return, your AGI ...
Line 11: Subtract line 10c from line 9 to calculate your adjusted gross income, and then enter that amount on line 11. Line 12: This is where you enter your standard deduction or your itemized ...
These deductions are set forth in Internal Revenue Code Section 62. A taxpayer's gross income minus his or her above-the-line deductions is equal to the adjusted gross income. Because these deductions are taken before adjusted gross income is calculated, they are designated "above-the-line". Thus, those deductions allowed in computing "taxable ...
In the United States income tax system, adjusted gross income (AGI) is an individual's total gross income minus specific deductions. [1] It is used to calculate taxable income, which is AGI minus allowances for personal exemptions and itemized deductions. For most individual tax purposes, AGI is more relevant than gross income.
From gross income, the taxpayer may subtract the amount of any deductions listed in § 62(a) ("above-the-line deductions") to arrive at an adjusted gross income. The taxpayer then subtracts the appropriate amount for personal exemptions under § 151(d)(1) (as adjusted annually for inflation under § 151(d)(4)).
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