Let’s face it, tax terminology can get a little confusing. Income definitions, comparisons, and related documents
It helps determine your eligibility in other financial situations, like applying for a loan to buy property, eligibility to rent an apartment, or getting a student loan to pay for higher education. (Some credits and tax deductions have specific AGI limitations.)ģ. It helps you better understand if you qualify for specific tax credits or deductions. (More on how to calculate AGI later in this post!)Ģ. It serves as the starting point for calculating your federal tax liability – and your federal tax rate. But what does Adjusted Gross Income mean for you in real life? Here are a few places it comes into play!ġ.
