Adjusted gross income (AGI)
Your total income minus certain deductions; many limits, including who can deduct an IRA, are based on it.
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Words beside it
- earned income
Earned income is money you receive from working, like a paycheck from a job or pay from freelance work. You generally need earned income to be allowed to contribute to an IRA at all.
- federal income tax
A portion of the money you earn that the United States government collects each year, with the amount based on how much you made during that year.
- gross income
The total amount of money you earn before any taxes or deductions are taken out. It is the big number at the top before anything gets subtracted.
- Gross margin
Revenue minus the direct cost of what was sold, as a percent of revenue.
- Income limit
An income limit is a rule that says once you earn above a certain amount of money per year you are no longer allowed to do a specific financial action, like contributing directly to a Roth IRA.
- Income statement
Revenue, costs, and profit over a period.
- modified adjusted gross income
Modified adjusted gross income is a specific calculation of your yearly earnings that the IRS uses to decide if you qualify for certain accounts or benefits. It starts with your total income and then adds or removes a few specific items according to tax rules.
- Net operating income (NOI)
A property's rent minus operating costs, before the mortgage.
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