Adjusted Gross Income

Adjusted Gross Income IconA box in which to enter each parent’s annual “Adjusted Gross Income” is a new required element on the Income page. Adjusted Gross Income is simply a parent’s gross income reduced by thirteen different adjustments (expenses) such as,
  • alimony paid,
  • retirement contributions,
  • student loan interest,
  • educator expenses,
  • moving expenses,
  • HSA contributions, and
  • the deductible portion of SE tax, among others.
Unlike other elements on the Income page, which can be entered either as annual or monthly amounts, the Adjusted Gross Income (“AGI”) is always an annual amount.
AGI is the starting point for determining a parent’s income tax bracket, and it bears directly on valuing dependent exemptions, child care tax credits, and child tax credits.
The Bradley calculator will suggest an estimated AGI using current monthly income and estimated alimony (maintenance), but the program does not collect enough data to provide anything more than an estimate. The suggestion is displayed on the green bar directly beneath the AGI input area. To use the suggested amount, simply double-click on
the suggestion, displayed in yellow.
Annual Adjusted Gross Income
The very best place to get a parent’s AGI, however, is from their most recent income tax return (Line 37 – Form 1040). An example of the AGI section of IRS Form 1040 appears below.
Adjustd Gross Income
Be sure to enter an AGI value for each parent. If no value is entered, the calculator cannot determine a parent’s income tax bracket, and therefore will not be able to value dependent exemptions, child care tax credits, and child tax credits, or calculate the Income Tax Considerations adjustment for Section E.

About Brad Short

CEO : Bradley Software; Of Counsel at Short, Borth & Thilges, Attorneys at Law, LLC, Overland Park, Kansas. Born Birmingham, Alabama, December 27, 1941; admitted to bar,1966, Kansas and U.S. District Court, District of Kansas; 1975, U.S. Court of Appeals, Tenth Circuit; 1976, U.S. Supreme Court. Education: University of Colorado (B.A., 1963; J.D., 1966). Contributing Author, Practitioner's Guide to Kansas Family Law, Kansas Bar Association, 1997. Listed in: The Best Lawyers in America, Family Law, every year from 1987 through 2013. Member, Technology Advisory Committee, Kansas Judicial Council, 1991-1998. Member: Bourbon County, 1966-1977 (President, 1970-1971), Johnson County (Member: Ethics and Grievance Committee, 1984-1998; Family Law Bench/Bar Committee, 1984-), Kansas and American (Vice-Chair, Solo Practitioners and Small Firms Committee, Economics of Law Practice Section, 1984-1985) Bar Associations; Kansas Trial Lawyers Association, 1974-1984 (State Treasurer, 1975-76; Member, Board of Governors, 1974-1984). Fellow, American Academy of Matrimonial Lawyers, 1994-2013 . Practice areas: Family Law.
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