1/13/2024 0 Comments Adjusted gross income 2016 w2 formWhile you can’t find AGI on the W2 your employer sent you, you’ll use your Form W-2 to help calculate AGI. Your AGI determines whether you’re eligible for various tax credits during tax time. Your adjusted gross income acts as a guidepost for several aspects of your finances. Here’s what you need to know about AGI, how it is calculated and how it impacts your finances. It also determines your tax bracket and affects your ability to contribute to certain retirement accounts. Your AGI is important because your eligibility for additional deductions and tax credits depends on this figure. Your adjusted gross income, or AGI, is your gross income-the sum of all your income sources for the year-less certain above-the-line deductions allowed by the Internal Revenue Service. But regardless of whether you itemize or claim the standard deduction, your final tax bill begins with one number: your adjusted gross income. Every year, taxpayers scramble for deductions to reduce their taxable income.
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