Adjusted Gross Income (AGI) Coeur d’Alene Business

Tax law refers to your individual net income as “adjusted gross income (AGI).”

• If you operate your Coeur d’Alene business as an S corporation, your AGI includes your net gain or loss from your S corporation.
• If you operate your Coeur d’Alene business as a C corporation, the C corporation files its own tax return and pays its own taxes so its income does not show up in your AGI.

How to Calculate AGI

You find your AGI at the very bottom of page one of your individual federal income tax return.

Before getting to your AGI, your Form 1040 has you calculate your total income.

• The tax code calls your “total income” gross income and defines “gross income” as all income from whatever source derived.

Once you calculate your total income, you subtract certain expenses and other amounts listed mostly in Section 62 of the Tax Code. The resulting figure is your adjusted gross income, or AGI, for the year.

Total Income minus Adjustments equals Adjusted Gross Income.

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