The term adjusted gross income (“AGI”) refers to the income of an individual that is taxable. The AGI includes an individual’s gross income from taxable sources minus that individual’s maximum allowable tax adjustments. 26 U.S.C. § 62(a)(2)(A) provides in part that AGA consists of gross income minus deductions consisting of expenses paid or incurred by […]
Category: Tax Law
Active Income
The term active income refers to income for which services are performed, such as wages, salary.
Accrued Income
The term “accrued income” refers to the money earned by a person, but not yet received by that person. “Accrued income is that earned but not yet due or payable to the trustee, while accumulated income represents that paid to, but not distributed by the trustee.” Matter of Schlinger, 48 Misc.2d 346 (1965). Prior to […]