Back to top

Blog

Click here to go back

Tax Glossary: Adjusted Gross Income (AGI)

Posted by McDonald & Osborne Posted on Oct 13 2015

Adjusted Gross Income (AGI) : This is your income from all taxable sources minus certain adjustments to income, and is the key to determining your eligibility for certain tax benefits. AGI is reduced by the value of personal and dependency exemptions and by either the standard deduction or the total of your itemized deductions . The resulting amount is your taxable income , the amount on which you income tax bill will be based.