Adjusted Gross Income Definition
Adjusted gross income is the amount of an employee’s take-home pay after adjusting for required and voluntary deductions.
Adjusted Gross Income Extended Definition
Adjusted gross income is the amount of money employees receive each month after deductions and other adjustments (e.g., an employee’s total taxable income). Adjusted gross income is also known as AGI.
Adjusted gross income can present a more realistic financial picture than gross income alone. Lenders will often ask to see the adjusted gross income to determine whether to approve a person’s loan.
Last Updated By
Andrew Freiman | Feb 23, 2023