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.
If Ted and Eleanor choose to donate property to these types of public organizations and they would recognize long-term capital gain if they sold that property, the deduction is limited to the lesser of (a) 30 percent of their adjusted gross income
or (b) 50 percent of their adjusted gross income
minus the amount of charitable contributions allowed for contributions to the 50 percent-type charities described above.
Certain deductions are subtracted from gross income to arrive at adjusted gross income
(see Q 7527, Q 7528).
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.
Also, the maximum yearly contribution is subject to a pro rata phase-out for taxpayers filing jointly with modified adjusted gross incomes
between $167,000 and $177,000 (for single taxpayers with modified adjusted gross incomes
between $105,000 and $120,000).
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).