adjusted gross income

Adjusted Gross Income - AGI

Used to determine how much of your income is taxable. AGI consists of gross income from taxable sources minus your maximum allowable adjustments.

Investopedia Commentary

AGI minus deductions and personal exemptions equals your taxable income.

Related Links

Five Tips for the Tax-Smart Investor
Traditional IRA Deductibility Limits
The Saver's Tax Credit: an Added Incentive to Fund Your Plan

See also: Accumulated Earnings Tax, Income Tax, Personal Income

Also spelled: AGI

adjusted gross income

The amount of taxable income that remains after certain allowed business-related deductionssuch as alimony payments, contributions to a Keogh retirement plan, and in some cases, contributions to an IRAare subtracted from an individual's gross income. Adjusted gross income and gross income will be the same for many taxpayers.

Main Entry: adjusted gross income
Function: noun
: an individual's gross income decreased by the amount of deductions allowed esp. for business expenses