The amount of your AGI directly influences your eligibility to claim many of the deductions and credits available on your tax return. Your MAGI is used to determine your eligibility for certain deductions. TurboTax Tip: Your modified adjusted gross income, or MAGI, is your AGI increased or decreased by certain amounts that are unique to specific deductions. Student loan interest and tuition paymentsĭeducting your eligible adjustments from your total income results in your AGI.Some examples of adjustments to income include: You’ll sometimes hear these referred to as “above the line” deductions. The deductions you take to calculate AGI are referred to as “adjustments to income.” These are specific deductions that the IRS allows you to use to reduce your total income to arrive at your AGI. Throughout your tax return form, there are many opportunities to take deductions, some of which reduce your total income to determine AGI, and some that are taken in later parts of the return to reduce your taxable income.
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