536. How is adjusted gross income determined?Nuco Employeercline202014-07-25T18:19:00Z2014-07-25T18:19:00Z13622069Summit Business Media174242714Site Map/General Income Taxation/Individuals/Adjusted Gross IncomeTaxFactsDefaultArticle123931423-00-tf2.xml1423.00;#1719;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 2How is adjusted gross income determined?
13500.0000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-14T22:20:07Z536. How is adjusted gross income determined?Adjusted gross income is determined by subtracting the following deductions from gross income: (a) expenses directly incurred in carrying on a trade, business or profession (not as an employee – see Q 7943); (b) the deduction allowed for contributions made by a self-employed individual to a qualified pension, annuity, or profit sharing plan, or a simplified employee pension or SIMPLE IRA plan; (c) certain reimbursed expenses of an employee in connection with his employment, provided the reimbursement is included in gross income (if the employee accounts to his employer and reimbursement does not exceed expenses, reporting is not required); (d) deductions related to property held for the production of rents and royalties (within limits); (e) deductions for depreciation and depletion by a life tenant, an income beneficiary of property held in trust, or an heir, legatee or devisee of an estate; (f) deductions for losses from the sale or exchange of property (see Q 530); (g) the deduction allowed for amounts paid in cash by an eligible individual to a traditional individual retirement account (IRA), or individual retirement annuity; (h) the deduction allowed for amounts forfeited as penalties because of premature withdrawal of funds from time savings accounts (see Q 7846); (i) alimony payments made to the taxpayer’s spouse (see Q 573); (j) certain reforestation expenses; (k) certain jury duty pay remitted to the taxpayer’s employer; (l) moving expenses permitted by IRC Sec. 217; (m) the deduction for Archer Medical Savings Accounts under IRC Section 220(i); (n) the deduction for interest on education loans; (o) the deduction for qualified tuition and related expenses; (p) the deduction for contributions (within limits) to Health Savings Accounts; (q) the deduction for attorneys’ fees involving discrimination suits; and (r) and the deduction for certain expenses of elementary and secondary school teachers up to $250 (effective for 2012 and 2013 under ATRA).