What does AGI stand for?

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Multiple Choice

What does AGI stand for?

Explanation:
In taxation, AGI stands for Adjusted Gross Income. It’s your total income from all sources minus the adjustments you’re allowed to subtract “above the line” before deductions. Those adjustments include things like traditional IRA contributions, student loan interest, educator expenses, health savings account contributions, and a portion of self-employment tax, among others. This figure—AGI—is what determines eligibility for many credits and deductions and is the amount you use before applying either the standard deduction or itemized deductions to arrive at taxable income. It’s different from gross income, which is the full amount you earned before any adjustments. The other terms listed aren’t standard tax definitions, so they aren’t what AGI represents.

In taxation, AGI stands for Adjusted Gross Income. It’s your total income from all sources minus the adjustments you’re allowed to subtract “above the line” before deductions. Those adjustments include things like traditional IRA contributions, student loan interest, educator expenses, health savings account contributions, and a portion of self-employment tax, among others. This figure—AGI—is what determines eligibility for many credits and deductions and is the amount you use before applying either the standard deduction or itemized deductions to arrive at taxable income. It’s different from gross income, which is the full amount you earned before any adjustments. The other terms listed aren’t standard tax definitions, so they aren’t what AGI represents.

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