Adjusted Gross Income (AGI)
Why AGI Is Important
Adjusted Gross Income is a key figure on a tax return. It serves as the starting point for determining eligibility for many deductions, credits, and other tax provisions.
- Determines eligibility for certain tax credits.
- Affects deduction limitations.
- Used in various tax calculations throughout the return.
Tip
A lower AGI may allow taxpayers to qualify for additional tax benefits.
Summary
AGI is one of the most important numbers on a tax return because many tax rules depend on it.