What is Adjusted Gross Income

Ray Fisher
Ray Fisher

Credentials
Licenses - Series 7, 66, 6, 24, 4
Firms- E*Trade, JP Morgan, Merrill Lynch, Scottrade

Table of Contents | Pro Stock Options



Adjusted gross income is all income sources that are taxable minus qualified deductions.

Many states use the federal adjusted gross income as the starting point for the calculation of the state’s taxable income.

Gross Income Sources

  • wages
  • business income
  • consulting
  • profit on the sale of properties
  • rental income
  • dividends
  • interest income
  • royalties
  • oil, gas, mineral rights
  • gambling income
  • tips
  • social security income
  • unemployment income

Deductions

  • contributions to qualified retirement accounts | Traditional IRAs, Sep IRAs, Simple IRAs
  • school tuition, fees, plus student loan interest
  • health savings account deductions
  • alimony paid
  • business related expenses for military personnel, performing artists, teachers
  • jury duty paid directly to employer

Reporting Adjusted Gross Income | 1040 Tax Return