Income Comparison

Gross Income

Starting point for determining Federal and State income tax

Gross Income otherwise provided by law they all income comes from all sources

Adjusted Gross Income

Total gross income minus specific deduction

For most individual tax purposes Adjusted Gross Income is more relevant

Taxable Income

Amount of income calculated that is due

General called Gross Income or Adjusted Gross Income

How can each one of these affect each other

Gross Income is a starting point

For individual tax AGI can be more relevant