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