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What Is Adjusted Gross Income Example. Adjusted Gross Income, or AGI, starts with your gross income, and is then reduced by certain "above the line" deductions. Learn what goes into it, how to calculate Adjusted gross income (AGI) is the number you get after you subtract your adjustments to If you increase these deductions, you can lower your taxes.
Understanding adjusted gross income—the amount of income for which you're required to pay taxes—means you can actively work to lower your tax bill.
For example, in order to qualify for the Earned Income Tax Credit or Saver's Tax Credit, your AGI must be below certain limits.
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Adjusted Gross Income, or AGI, starts with your gross income, and is then reduced by certain "above the line" deductions. After you have added up your full taxable income (gross For example, if you are a school teacher who purchases necessary classroom supplies. Learn how to calculate AGI and what it means for your taxes.