What is adjusted gross income? You need it to calculate your dunning check.

0

The House of Representatives must vote on the $ 2 trillion stimulus package Friday as Americans wait for financial relief from the coronavirus pandemic.

The bill will give most people a one-time relief check based on adjusted gross income, or AGI.

So what is adjusted gross income? How do you calculate it?

And after you calculate it, you might be pleasantly surprised because it’s usually a lower number than the income you see in the first box of your W2 – which means your raise control could be bigger.

IRS defines adjusted gross income as “gross income” minus “income adjustments”.

Gross income includes your salaries, dividends, capital gains, business income, retirement distributions, and other income.

Then, some payments you make may be deducted or excluded from that amount. These are your “income adjustments”. They include educator expenses, student loan interest, health savings account contributions, retirement account contributions, and more.

You add it all up, subtract it from your gross income and that’s how you get your adjusted gross income.

If you’ve filed a tax return, the numbers are there.

On your 2018 tax return, AGI is listed on line 7 of IRS Form 1040 or line 35 of IRS Form 1040NR.

On your 2019 return, you can find your AGI on line 8b of IRS Form 1040 or on line 35 of IRS Form 1040NR.

Once you find your AGI, use our stimulus calculator to see how much your unique stimulus control will be.

Tell us your coronavirus storieswhether it’s a hot tip, a topic you want us to cover, or a personal story you want to share. If you want updates on New Jersey specific coronavirus news, subscribe to our Coronavirus in NJ newsletter.

Sign up for NJ.com’s New Jersey coronavirus SMS alerts:

Have you been scoffed at? Contact Karin Price Mueller at Bamboozled@NJAdvanceMedia.com. Follow her on Twitter @KPMueller. Find Bamboozled on Facebook. Mueller is also the founder of NJMoneyHelp.com. Stay informed and subscribe NJMoneyHelp.com‘s weekly electronic newsletter.



Source link

Share.

Comments are closed.