Question

how are we finding the adjusted gross income.

Answer 1

First we add all the incomes of an taxpayer such as salary, dividend, capital gain other income etc, sum of which is called Gros Income.

There are some deductons availle to the taxpayers which can be adjusted from the gross income like contribution to retirement account, healthcare saving account (HSA) deduction, eligible losses etc. Thus AGI (adjusted gross reveue) is adjusted by deductiong certain specific deduction from Gross income.

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