What does the adjusted gross income mean Meaning and Definition
What does the adjusted gross income mean
Pronunciation
(/ˈdʒərbərə/ )
Part of Speech
Noun
Definition
In personal finance, the adjusted gross income (AGI) is the total income earned by an individual or household before subtracting deductions and taking into account income exclusions, as reported on their tax return. It is an important factor in determining taxes owed, as well as eligibility for certain Social Security and pension benefits.
Etymology
The term “adjusted gross income” dates back to the 1913 Revenue Act, which introduced the concept of gross income as the basis for calculating income taxes in the United States.
Usage Notes
When using “What does the adjusted gross income mean” in a sentence, it is typically used in a financial or business context. For example: “The accountant needed to know the client’s adjusted gross income to fill out the tax return accurately.”
Cultural References
In popular culture, the term “adjusted gross income” has appeared in various films, TV shows, and literature, often used to add a touch of realism to financial conversations between characters. For example, in the 2011 film “Moneyball,” the character played by Brad Pitt references adjusted gross income while negotiating a trade.
Idiomatic Expressions or Phrases
- Despite having a high adjusted gross income, the individual struggled to make ends meet.
Related Words or Phrases
- Gross income
- Taxable income
- Prior-year adjusted gross income
Collocations
- Adjusted gross income increases
- Adjusted gross income decreases
- Gross income minus adjusted gross income
Frequency of Use
The term “What does the adjusted gross income mean” is commonly used in financial and business contexts, particularly when discussing income taxes and financial planning.
Common Misspellings
- Adjusred gross income
- Adjucted gross income
- Adjsuted gross income