Adjusted gross income (AGI)

Adjusted gross income is a key tax concept and represents gross income less deductions (the standard deduction or itemized deductions) and personal and dependent exemptions are deducted to arrive at the amount of taxable income that will actually be taxed. In the business context, it is gross income minus business expenses. AGI will be used for an individual taxpayer to determine what benefits and phase-outs they are are subject to.