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Finance Dictionary and Glossary of Investment Terms
Adjusted Gross Income
AGI. The amount used in the calculation of an individual's income tax liability; one's income after certain adjustments are made, but before standardized and itemized deductions and personal exemptions are made.
An individualís gross income after a limited group of expenses is subtracted. These expenses range from business expenses, capital loss deductions of up to $3,000, expenses from rent or royalty income, individual retirement account contributions, alimony and other expenses.