adjusted gross income

noun

1. (in U.S. income-tax returns) the total of an individual's wages, salaries, interest, dividends, etc., minus allowable deductions. AGI

Example Sentences

For example, “If a married couple has a modified adjusted gross income of $250,000 and they buy a $50,000 piece of equipment for their business, that brings their income to $200,000 after the 100% depreciation. Now they may be eligible for other tax benefits,” says Brian Schultz, a tax partner at Plante Moran.

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Because donations to a DAF can usually be deducted up to 30% of adjusted gross income, this stock gift provides a dollar-for-dollar deduction and significantly lowers their taxable income.

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First, the tax bill sets a new floor: Gifts will be deductible to the extent they exceed 0.5% of your adjusted gross income.

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The full deduction goes to taxpayers with $75,000 or less in modified adjusted gross income, or $150,000 for married couples.

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A stripped-down hypothetical can illustrate the point: Suppose a married couple has $100,000 in adjusted gross income, and now they want to switch $10,000 from a traditional IRA to a Roth IRA.

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