Adjusted Gross Income (AGI) Calculator
AGI Calculator (Adjusted Gross Income)
Component | Description |
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Total Income | The total income earned by an individual before any adjustments. |
Adjustments to Income | Deductions allowed by the tax code, such as retirement contributions and student loan interest. |
Adjusted Gross Income (AGI) | The income after accounting for adjustments, which is used to determine tax liability. |
Formula | AGI = Total Income – Adjustments to Income |
Purpose | Used to determine an individual’s taxable income and eligibility for certain tax credits and deductions. |