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Adjusted gross income

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Adjusted gross income
An interim calculation in the computation of income Tax liability. It is .computed by subtracting certain allowable adjustments from gross income.
    
In the US, a person's income on which federal income Tax is calculated.This is gross income less adjustments such as Individual Retirement Account, Simplified Employee Pension Plan, Keogh Plan and Alimony payments but before itemized deductions such as state and Local income taxes, Interest expenses and medical expenses.
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