Adjusted Gross Income (AGI)
Why AGI Is Important
Adjusted Gross Income is one of the most important figures on an individual tax return. Numerous deductions, credits, and phase-out limitations are based on AGI. Lower AGI may increase eligibility for valuable tax benefits.
Tip
When solving CPA REG problems, determine AGI before considering deductions and credits.
Summary
AGI serves as the foundation for many tax calculations throughout the individual return.