Question

What is adjusted gross income and what is taxable income — What's the difference between the two?

Answer

Regarding your question, what is adjusted gross income and what is taxable income, W-2 gross income includes amounts from your W-2 that you must report on your return, while your taxable income is your adjusted gross income (AGI) minus your deductions. AGI includes W-2 gross income and income from other sources.

So, if you only earn W-2 wages, your W-2 income is probably larger than your total taxable income.

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