Positive young woman with afro haircut, dressed in fashionable clothes looking at her cell phone while smiling. <a href='https://www.freepik.com/photos/coffee'>Coffee photo created by wayhomestudio - www.freepik.com</a>
Alexandra Sabalier
November 01, 2021
759
1283
1 min

What is Adjusted Gross Income

What is the Adjusted Gross Income (AGI)

Adjusted Gross Income is the amount that is used to calculate taxable income. For most individual tax purposes, AGI is more relevant than gross income. For US tax purposes, the Adjusted Gross Income is your total gross income minus specific deductions.

This is how you calculate your Adjusted Gross Income:

Tally up all your sources of income to calculate your gross income. After you've tallied up all your sources of income to find your gross income, calculate your expenses and deductions that can reduce your tax burden. Your gross income can be reduced by:

  • Certain business expenses such as materials, gas mileage, or equipment rental fees
  • Educator expenses
  • Penalties from financial institutions for early withdrawal of savings
  • Alimony paid
  • Student loan interest (with some qualifications)- Married tax-filers who are not
  • Deduction for half the self-employment tax
  • Contributions to certain retirement accounts
  • Health savings account (HSA) deductions
  • Jury duty pay sent directly to the juror's employer
  • SEP-IRA, SIMPLE IRA and 401(k) deductions for the self-employed

Your income after these adjustments to income is your adjusted gross income (AGI), which serves as the basis for your income taxes.

I am here for you

If you need to calculate your AGI to properly file your U.S. tax return and get organized during the year so that you can claim the foreign earned income exclusion, as well as all the other deductions, exclusions and credits you are entitled to, we can do it right away. If you have further questions, or need more guidance on planning your tax strategy, let's talk. I'm always happy to provide detailed, personalized guidance through a 1:1 consultation. You can reserve the best day and time to meet by contacting me to schedule your consultation.

Share
Why hire me?
  • 100% Online and Safe
  • Personal Lawyer
  • Affordable
  • At Sabalier Law, you count with expert legal representation and guidance throughout your entire process as well as support afterwards
  • 100% online services using the latest in secure technology to effectively and successfully represent you and your case no matter where you reside in the world
  • Confidential communication, document review, and legal advise fully protected by the Attorney- Client privilege
  • Unlimited legal consultations via telephone, video-call, and e-mail
  • Fully Billingual communication, and legal services in English and Spanish
  • Expert legal preparation and expedited submission of your documents
  • Constant updates and communication with you on the status of your case, applications, and documents' reviews
  • Timely notification of changes in the laws and procedures that are relevant for your case
  • Attentive personal support throughout our entire Attorney- Client relationship
  • Guaranteed maximum secure electronic payment platforms to ensure smooth and easy payment methods anywhere you are located in the world
Clients Trust Me
5.00
Reviews10
See more reviews
“Strongly recommend. Alexandra offers a concentrated expertise built upon a well-rounded professional and academic background.”
Daniel Kroytor
“Alexandra is the ultimate professonal. Responds within hours to any email. Is very clear and concise in her communication. Gets results quickly. She is friendly...”
Michael Kindereit
“Alexandra was very helpful within the free consultation and I would definitely consider her for any tax returns/advice in the future.”
Jubal Battisti
© Copyright Sabalier Law 2021
Made with special  by
orsaorin