Adjusted gross income is the amount on which the individual tax liability is calculated. Gross income includes salary, rental income, dividends or interest, capital gains, social security income and any other compensatory incomes like a pension.
Since the gross income includes lots of items that are not subject to tax and so these items should be adjusted from gross income to reach the final taxable figure. These items may include study expenses, deduction on health saving account, taxes on self-employed that are deductible; retirement accounts contributions, interest on education loan, and others.
Nick and Nora are married and have three children in college.
Gene and Dixie, husband and wife (ages 35 and 32
Sally and Tom are married, have three dependent children, and
Jesse Brimhall is single. In 2016, his itemized deductions were
In 2016, Lou has a salary of $53,300
Lian is 56 years old and is injured in an automobile accident
Determine the net effect on Tamara’s adjusted gross income with regard to
Simon graduated from Lessard University last year. He financed his education
Rex incurred $8,000 of employment-related meal and
Arthur and Cora are married and have 2 dependent children. They
