What is Adjusted Gross Income? How is It Calculated?

[Good-Person]

The Adjusted gross income is a very common topic in the field of finance. As far as I have read, the adjusted gross income is the actual income of a person. It is calculated after "adjusting" certain kinds of balances to the person's actual income. This may also include tax adjustments and other kind of expenses as well. So, what is it? How is it calculated? Why is it important?

 

[Ernestnari]

From my knowledge, Adjusted Gross Income is the amount gotten after all the statutory deductions have been made on your income. These deduction might be in the form of statutory child support, health insurance, retirement contribution and other deductions. The remaining balance after all this deductions is your Adjusted Gross Income. It is majorly used to fix a cap on the amount you should be taxed by the government

 

[Kane]

It is very important to record your incoming cash and outgoing cash. You can calculate your net income (personal finance) or net profit (in terms of business) only when you deduct your total expenses, including your taxes and other expenses.

 

[Lynaia]

Your adjusted gross income what will use to calculate your taxable income. Adjusted gross income is equal to all the total income that you report for tax minus some specific deduction

 

[Good-Person]

From my knowledge, Adjusted Gross Income is the amount gotten after all the statutory deductions have been made on your income. These deduction might be in the form of statutory child support, health insurance, retirement contribution and other deductions. The remaining balance after all this deductions is your Adjusted Gross Income. It is majorly used to fix a cap on the amount you should be taxed by the government

I must also say that taxation is also a huge part of adjusted gross income. This is because income tax is also deducted from your income and then you have the disposable income in your hand.

 

[GIFTMICHAEL]

From my knowledge, Adjusted Gross Income is the amount gotten after all the statutory deductions have been made on your income. These deduction might be in the form of statutory child support, health insurance, retirement contribution and other deductions. The remaining balance after all this deductions is your Adjusted Gross Income. It is majorly used to fix a cap on the amount you should be taxed by the government

Adjusted gross income is the Amount recorded after deducting your expenses incurred during the period of transactions.

It is usually taken so the business owners can determine the expenditure and its toll on the revenue generated in other to checkmate bankruptcy.

 

[Ernestnari]

I must also say that taxation is also a huge part of adjusted gross income. This is because income tax is also deducted from your income and then you have the disposable income in your hand.

Taxes are not part of the adjusted gross income. Rather the adjusted gross income is used to determine your taxes. It is good that way so that individuas with huge financial responsibilities won't be over taxed.

 

[Planbizzle]

You must first determine your total gross income, from which you must deduct any permissible expenses to determine your adjusted gross income (AGI). Your own financial circumstances will determine the precise adjustments you are qualified to make, which may change from year to year.

 

[Good-Person]

You must first determine your total gross income, from which you must deduct any permissible expenses to determine your adjusted gross income (AGI). Your own financial circumstances will determine the precise adjustments you are qualified to make, which may change from year to year.

There are certain times when it could be harder to calculate the adjusted gross income in my country as we also have to pay sales taxes on items that we purchase in supermarkets. It could be a hard thing to evaluate the percentage of taxes being charged on each and every product.

 

[eenya001]

It is very important to record your incoming cash and outgoing cash. You can calculate your net income (personal finance) or net profit (in terms of business) only when you deduct your total expenses, including your taxes and other expenses.

Businesses that keeps records tend to survive and stay longer than business that doesn't keep records, as not keeping record is not good and shows poor management

 

[Kane]

I think all sorts of businesses keep their financial records. While big business can afford to have a separate finance department small business will have some one to look after the finances.

 

[eenya001]

I think all sorts of businesses keep their financial records. While big business can afford to have a separate finance depart small business will have some one to look after the finances

big businesses usually spends a lot of money to have there finances in check, as this is what would show their investors and probably banks if they intend to collect loans that they are profitable.

 

[Kane]

Not just for showing banks or investors big business have to maintain the financial records for the purpose of paying taxes as well as maintaining the financial health of the comnpany

 

[Danny4cash]

The gross income is the actual income of a person or business. As a business owner, when make an income in your business, there are some money must deduct from it. Those kind of money include tax, electricity bill and others.

 

[Chibson]

It is usually calculated after you might have determined your incoming and outgoing finances. Of course your taxes must be deducted first before it will be determined.

 

[Jonaville1]

Your adjusted gross income what will use to calculate your taxable income. Adjusted gross income is equal to all the total income that you report for tax minus some specific deduction

I think this is self-explanatory and it is something that every business owner should know about so that they will not mistake they adjusted gross income for total income