Posts Tagged ‘AGI’

Taxable Income is…

Friday, June 3rd, 2011

Taxable income equals the portion of your earnings the government is allowed to tax. Most income is taxable, so if you have a job, odds are that whatever money you make at that job counts as taxable income.

Things that are tax-deductible, like most charitable donations, reduce the amount of your taxable income and so may reduce your tax bill.

Adjusted Gross Income is…

Thursday, July 30th, 2009

Adjusted gross income (or AGI) is your gross income minus any tax deductions (like work expenses and charitable donations) or any adjustments. For example, if you make $100 but spend $2 on a stapler for work and give $5 to charity, your AGI is $93. This is the income that the IRS generally looks at when they determine your taxes.