Multiple choice general knowledge

WHAT IS ADJUSTED GROSS INCOME?

  1. YOUR AFTER-TAX INCOME

  2. YOUR TAXABLE INCOME AFTER DEDUCTIONS

  3. YOUR TAXABLE INCOME BEFORE DEDUCTIONS

  4. NONE OF THE ABOVE

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

AGI is gross income minus 'above-the-line' adjustments like retirement contributions, student loan interest, and tuition. It represents income AFTER specific deductions but BEFORE the standard deduction or itemized deductions. AGI determines eligibility for certain tax benefits and is the starting point for calculating taxable income.