Adjusted gross income

In the U.S. tax system, adjusted gross income means your total gross income minus specific deductions. Gross income includes all income from all sources and is reduced by certain items to arrive at adjusted gross income, and these includes:

1. Expenses of carrying on a trade or business including most rental activities (other than as an employee)
2. Certain business expenses of teachers, reservists, performing artists, and fee-basis government officials,
3. Health savings account deductions,
4. Certain moving expenses
5. One-half of self-employment tax,
6. Allowable contributions to certain retirement arrangements (SEP IRA, SIMPLE IRA, and qualified plans) and Individual Retirement Accounts (IRAs),
7. Penalties imposed by financial institutions and others on early withdrawal of savings,
8. Alimony paid (which the recipient must include in gross income),
9. College tuition, fees, and student loan interest (with limitations and exceptions),
10. Jury duty pay remitted to the juror's employer,
11. Domestic production activities deduction, and
12. Certain other items of limited applicability.