| Gross income is the total amount income of | | | | income. |
| money earned by an individual that is not gone | | | | There is a lot of different between adjusted and |
| under the interest payments and tax deductions. | | | | modified adjusted gross income (MAGI). MAGI is |
| The income has many things that come under it | | | | the amount figured after adding some deducted |
| like wages, rental income, royalty income, interest | | | | expenses to AGI like the deductions in student's |
| income, farm income, capital gains, retirement | | | | loan and tuition fees, self employment tax, |
| accounts income, alimony and compensation for | | | | taxable social security, foreign income housing |
| unemployment. | | | | deductions and higher education costs which are |
| Adjusted Gross Income (AGI) is a portion of your | | | | passive income. A person should have the MAGI |
| income that decides certain percentage which was | | | | or else he loses all eligibility of benefits. Higher the |
| supposed to be paid as tax, after deducting all the | | | | amount of MAGI, Individual's retirement account's |
| reimbursing expenses from the money which is | | | | contribution reduces. |
| the adjusted gross income. Net income is another | | | | Always take the AGI of the previous year to find |
| term for AGI. This amount is then used by the | | | | out the current year's AGI. Mention all the |
| Internal Revenue Service (IRS), which decides the | | | | calculations and prepare a checklist for your |
| benefits of tax that a tax payer is eligible to get. | | | | recent AGI. Always be sure that MAGI should not |
| Lesser the AGI, more are the benefits you get. | | | | go beyond a definite limit or else you would fail to |
| This specially checks the tax liability of your | | | | earn your tax refunds. |