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For vs. From deductions Difference between gross income, AGI, taxable income Difference between tax deduction and tax credit Difference between cash method and accrual method Casualty Losses...

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For vs. From deductions Difference between gross income, AGI, taxable income Difference between tax deduction and tax credit Difference between cash method and accrual method Casualty Losses Miscellaneous Itemized Deductions Capital Asset Categories of income (passive, active, portfolio)
Answered Same Day Mar 18, 2020

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Aarti J answered on Mar 19 2020
142 Votes
Difference between gross income, AGI, taxable income
Gross income is the total of all the incomes of an individual. It includes all the incomes through different sources all through the year. It includes the income from investment, income from rented properties, taxable withdraws from the retirement accounts and the other income earned over the period.
Taxable income is the income that is derived after the deductions of all the exemptions and deductions which one is eligible for from the gross income. This is the income on which the tax is calculated.
AGI is the adjusted gross income which is the income which is used to determine the income
acket for the tax purposes. It is the total of the gross income and the adjustments one is entitled to. These adjustments relates to the IRA contribution, student loan interest, heath saving accounts and self-employment taxes. It differs from gross income and taxable income as gross income is the total of all the income during the period and taxable income is the income which is used to calculate the taxes after the deductions and the exemptions.(Chirelstein M, 2005)
Difference between tax deduction and tax credit
Tax deduction is the expense or...
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