Definition from Nolo’s Plain-English Law Dictionary
Adjusted gross income (AGI) is gross income from taxable sources (including wages, interest, capital gains, income from retirement accounts, alimony received) minus allowable deductions, such as unreimbursed business expenses, some medical expenses, alimony paid, and deductible retirement plan contributions. You calculate your AGI on the first page of your federal tax return and it serves as the basis for figuring the income tax you owe.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:10 pm