Adjusted gross income (AGI)
I.is used to provide limitations on certain deductions from AGI.II.is unique to the individual income tax formula.
III.is the result before subtracting certain allowable personal expenditures from gross income.

Question

Adjusted gross income (AGI)
I.is used to provide limitations on certain deductions from AGI.II.is unique to the individual income tax formula.
III.is the result before subtracting certain allowable personal expenditures from gross income.
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Quizplus · Accepted Answer

1. Statement I is correct because AGI is indeed used to limit certain deductions. For example, some deductions are only allowed if they exceed a certain percentage of AGI.2. Statement II is correct because AGI is a term specific to the individual income tax formula in the United States, distinguishing it from other measures of income.3. Statement III is correct because AGI is calculated by making certain adjustments to gross income, such as subtracting specific allowable deductions, before personal exemptions and itemized or standard deductions are applied.

Adjusted Gross Income (AGI)