Define: Adjusted Gross Income

Business, Legal & Accounting Glossary

Definition: Adjusted Gross Income

Quick Summary of Adjusted Gross Income

In the USA, the difference between the gross income of a taxpayer and the adjustments to income.

What is the dictionary definition of Adjusted Gross Income?

Dictionary Definition

In the US, the difference between the gross income of a tax payer and the adjustments to income.


Full Definition of Adjusted Gross Income

Adjusted gross income is the amount of income used on IRS Form 1040 to calculate a person’s income tax<tax liability. The adjusted gross income is an individuals income (wages, interest, dividends, capital gains/losses, etc.) less various adjustments (IRA contributions, alimony paid, etc.). Adjusted gross income is calculated before the itemized or standard deductions, exemptions, and credits are taken into account. Adjusted gross income is recorded at the bottom of the 1040 form. Adjusted gross income is also used to determine an individual’s eligibility for various tax benefits and exemptions. Adjusted gross income is used on many non-IRS forms as a true measure of an individual’s income. Most state forms use the federal adjusted gross income figure to reflect an individual’s income for state taxes.


Cite Term

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Page URL
Modern Language Association (MLA):
Adjusted Gross Income. Payroll & Accounting Heaven Ltd. April 05, 2020
Chicago Manual of Style (CMS):
Adjusted Gross Income. Payroll & Accounting Heaven Ltd. (accessed: April 05, 2020).
American Psychological Association (APA):
Adjusted Gross Income. Retrieved April 05, 2020, from website:

Definition Sources

Definitions for Adjusted Gross Income are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020