Adjusted Gross Income

May 11, 2009 by admin

Adjusted Gross Income

What's the importance of your adjusted gross income (AGI)?

How you can reduce your AGI

What's the importance of your adjusted gross income (AGI)?

Your AGI is a very important number in many deductions if you itemize

Theses itemized deductions directly depend on your AGI

• Medical expenses
• Casualty and theft
• Miscellaneous expenses

Plus, many other items are related to your AGI

• Deductibility of IRA contribution
• Deductibility of rental losses
• Loss of itemized deductions for high-income people
• Charitable giving if you give a large portion of your income

A smaller AGI will reduce your taxes

How you can reduce your AGI

Don't make as much money!

But this probably isn't a popular "strategy"!

You should work to reduce your AGI by contributing to retirement accounts

Business and rental related losses can also reduce your AGI