What is the Adjusted Gross Income (AGI) mean?

Question

is it the tax sum reported from the previous year?

Answer 1

Deductions from gross income allowed in arriving at AGI (above the line deductions)
For the 2006 tax year, some examples of the deductions from gross income allowable in computing AGI include:

Certain business expenses of reservists, performing artists, and fee-basis government officials;
Health savings account deductions;
Certain moving expenses;
One-half of self-employment tax;
Penalties on early withdrawal of savings;
Alimony paid;
Deduction for contribution to Individual Retirement Arrangements (IRAs); and
Student Loan interest deduction.
The above list is not comprehensive. The deductions allowable in arriving at adjusted gross income should not be confused with itemized deductions such as home mortgage interest expense, medical expenses, property taxes, charitable contributions, etc. For a complete list of deductions that help you compute your AGI, see §62 of the Internal Revenue Code.

These deductions are called "above the line" deductions because they are taken while computing one's AGI. The AGI is "the line." itemized deductions are "below the line," and are generally not favored by taxpayers because they can be limited by the "two percent haircut." See itemized deductions for more on this.

Answer 2

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Yes, AGI excludes nontaxable benefits and deferred compensation. The term "gross income" means income currently subject to income tax. So by definition, anything that is tax-free or tax-deferred is not "gross income." Adjusted gross income (AGI) is gross income minus some deductions (adjustments) that are allowed regardless of whether the taxpayer itemizes or not. For example, contributing to a traditional IRA is an adjustment, payment of alimony is an adjustment. How much a person earns, his salary, usually is thought of as his wages before taxes and any salary reductions for retirement, health insurance, etc. Once you take away these salary reductions, you have wages which are incuded in gross income.

Answer 3

Agi Meaning

Answer 4

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RE:
What is the Adjusted Gross Income (AGI) mean?
is it the tax sum reported from the previous year?

Answer 5

No, AGI isn't anthing to do with the previous year. There are certain items that can be deducted from your income even if you don't itemize - some of these are alimony payments, interest on student loans, and IRA deductions. AGI is your total reported income minus these items, before personal exemptions and standard or itemized deductions are subtracted.

AGI amount from the previous year's return is sometimes used to validate that you are who you say you are when filing online.

Answer 6

Look at page 1 of the 1040 Form. You add up your income to get Total Income. Then, you add all your "adjustments" and subtract that amount from Total Income, to get Adjusted Gross Income.

Answer 7

If you mean on a tax form it is the total taxable income less adjustments before personal exemptions and standard deduction

Answer 8

you take your gross earnings then you take your allowed deductions subtract those deductions from your gross income and that is your adjusted gross income
there are not a lot of allowed deductions these days but there is always a deduction allowed for yourself. your tax book will tell you what you may or may not take as a deduction.
you have to read it to see what applies to your circumstances.
say your gross (largest sum) is $20,000 dollars and your allowed $1,200 dollars for yourself as a dependent
$20,000 minus $1,200 leaves $18,800 dollars adjusted gross income and that is what you pay your taxes on according to the tax tables.
good luck to ya