a. Remaining after exemptions are subtracted
b. from which allowable itemized deductions are subtracted
c. to which tax credits are applied
d. used to determine the tax liability
Take a look at the 1040 form. AGI is on lines 37 & 38. What do lines 40 & 41 say?
http://www.irs.gov/pub/irs-pdf/f1040.pdf
1040 page 1 line 37 Adjusted Gross income for that purpose and time.
And then again on the 1040 page 2 Line 38 AGI.
Go to the www.irs.gov website and use the search box for the Publication 17 to get started learning about the credits and deductions when you would be correctly filling out your 2013 1040 FIT return during the 2014 tax filing season.
Publication 17 (2013), Your Federal Income Tax
www.irs.gov/publications/p17/index.htm…
Each chapter covers different subjects and things OK.
36 chapters
The 1040 page 1 Line 7 does start with the Gross wages, Tips, Salaries, Etc Attach forms W-2.
And all other different types of income are reported on the correct lines through Line 21 and then Line 22 will have the Total income for the tax year.
The 1040 form page 1 Line 23 starts with the adjustment to income line through line 37 and line 37 does end up with your adjusted gross income and that amount does go to the page 2 line 38 AGI amount OK.
And then you would start with the other deductions that are available to a qualified taxpayer each tax year during the tax filing season OK.
Then you work on down to the line 43 TAXABLE income amount page 2 of the 1040 FIT return.
Pub 17 Part Six - Figuring Your Taxes and Credits
Chapter 29. How To Figure Your Tax
Line 44 1040 page 2.
Non refundable credit amounts that can be used to reduce your FIT liability to -0- ZERO at that time OK. And then on down to the line 54 page 2 of the 1040. And then you would still continue on down the page 2 line by line and in each section until the lines 72, 73 and possibly 74a amount of line 73 that you want REFUNDED to you if any is on that line at that time OK.
Hope that you find the above enclosed information useful. 09/06/2014
You can get a tax form from the IRS website and look at it and see for yourself.
is this a question on your competency test? if so you failed
