Question

what is the difference between gross income and adjustable gross income?

Answer 1

Gross income is the income you have earned in a year from all sources before any type of deductions such as tax deductions or any other type of deductions. Gross income fully reflects how much money you made in a year and it becomes an important to determine your tax return

Adjusted Gross income will always be lower than your gross income as in the name implies it will be adjusted for expenses that you may qualify for and it reduces your gross income. AGI is an important calculation because it also determines your eligibility to claim additional deductions and credits that may be available to you know when you fill your tax returns.