Adjusted Gross Income meaning usually abbreviated AGI is your total income less a list of allowable expenses given as adjustments. These allowances make your gross income lower prior to calculating your tax. These may include donations to conventional IRA, student loan interest and deductions on self employment taxes. AGI is not the last taxable income, but it is an important to estimate one. AGI is what the IRS uses as a benchmark to determine the amount of income you owes in tax and eligibility in different tax benefits.

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