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What is Adjusted Gross Income? Is it the income after Schedule A deductions have been taken out or before?
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<What is Adjusted Gross Income? Is it the income after Schedule A deductions have been taken out or before?>

It is the number on line 31 of your 1040 form. (Line 32 on
the next page is the same, copied from line 31.) This is
before the itemized deductions or standard deduction
is subtracted (line 34), or the exemptions are subtracted (line 36). The line you may be thinking of is line 37: Taxable Income.

So your answer is: before.

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<<What is Adjusted Gross Income? Is it the income after Schedule A deductions have been taken out or before? >>

The best way to understand AGI is to grab a 1996 tax booklet with the instructions so that you can actually see what goes into AGI.

But, in short, AGI represents all of your TOTAL income (wages, interest, dividends, capital gains or losses, net Sch C business income, taxable social security benefits, net rental income, pension and IRA income, etc.) LESS ADJUSTMENTS FROM INCOME (such as deductible IRA contributions, SEP contribution, Keogh contributions, SE health insurance, alimony paid, etc.).

But AGI does NOT included Schedule A itemized deductions. AGI is the amount BEFORE itemized deductions and personal exemptions are considered.

TMF Taxes
Roy
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