In order to receive the maximum deduction, an individual filer must have modified
adjusted gross income of less than $80,000, or $160,000 for joint filers.
After deductions, their
adjusted gross income was 608,611 dollars in 2012 and 789,674 dollars in 2011.
Actually, you can't really do anything, as an individual, to lower your
adjusted gross income. All of your tax plan's diet has to take place in your practice.
The Senate measure would set the maximum at a combined average
adjusted gross income of $750,000 while the House version would put the maximum AGI at $950,000.
These adjustments are usually made after we receive information from the IRS on the
adjusted gross income reported on the 1040.
These two tables classify all tax returns by both size of income and effective tax rate, i.e., income tax as a percentage of either
adjusted gross income or expanded income.
Adjusted gross income (AGI) consists of the taxable income prior to exemptions and the standard or itemized deductions that are reported by individuals on their federal income tax return.
This means that the 2008 income limit (modified
adjusted gross income) applies and the choice accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns).