Can someone please explain how "Adj Gross Income" is calculated on the Federal Taxes detail report.
I assumed that it's the sum of Earned Income + Capital Gains + Non-Asset Income + Adj to income (the 4 preceding columns in the report, but in many years my Adj Gross Income is much more than the sum of those columns.
Where is the additional income coming from?
Thanks.
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There are things in AGI that aren't reported in the tax reports (the original design center for the tax reports was as a debugging tool, not a report detailing the 1040, et al. and it was decided to let our customers in on the information).
AGI is:
earning +
pensions -
contributions to tax favored retirement accounts +
life insurance payouts +
special receipts +
annuity receipts +
real estate tax flow +
nominal asset income +
capital gains nominal income +
taxable social security benefit +
housing and real estate capital gain -
self employed payroll taxes
More or less.
Best,
Dick Munroe
I am seeing problems with the AGI being used to calculate taxes. My scenario is that ESPlanner reports that my regular asset income is $25,115. The tax form reports the Nom Asset Inc as $24,148. Perhaps the Nom Asset Inc adjusts the Real Asset income in some way to derive the taxable income. Is so, what is the calculation?
However my real problem is that in this scenario I receive no taxable distributions from the IRA's and have no other income, i.e. I living off my regular assets. However, I am seeing an AGI of $58,601. This means that ESPlanner is finding other income in the amount of $34,453 ($24,148 + $34,453 = $58,601) from somewhere else. According to the above sources I can't understand where it's coming from unless it's "capital gains nominal income". Please explain.
Thanks