Adjusted gross income definition

Adjusted gross income definition: The sum of all wages, dividends, tips, interest, capital gains, annuities, and any other income earned during a year

We now illustrate with real life examples.

Example #1:

In 2009, Peter earned 15,000 USD working part time as a taxi driver. He also earned 200 dollars a week working as a math tutor for 20 weeks. Finally, peter earned 50 dollars of interest income from a saving account

What is Peter's adjusted gross income?

Earnings = weekly earning × number of weeks worked

Earnings = 200 × 20 = 4,000

Adjusted gross income = wages + interest income

Adjusted gross income = 15,000 + 4000 + 50

Adjusted gross income = 19,050 USD

Example #2:

In 2009, Matha earned 80,000 USD in real states investment. She also earned 50,000 dollars in annuities and 20,000 of interest income. Finally, Martha made 100,000 dollars with her website selling educational software

What is Martha's adjusted gross income?

Adjusted gross income = wages + interest income

Adjusted gross income = 80,000 + 50,000 + 100,000 + 20,000

Adjusted gross income = 250,000 USD

Have A Great Basic Math Word Problem?

Share it here with a very detailed solution!

[ ? ]

Upload 1-4 Pictures or Graphics (optional)[ ? ]


Click here to upload more images (optional)

Author Information (optional)

To receive credit as the author, enter your information below.

(first or full name)

(e.g., City, State, Country)

Submit Your Contribution

 submission guidelines.

(You can preview and edit on the next page)

New math lessons

Your email is safe with us. We will only use it to inform you about new math lessons.

Page copy protected against web site content infringement by Copyscape

Recent Articles

  1. Two Beautiful Law of Sines Problems

    Oct 17, 16 07:37 PM

    Two great law of sines problems that will show you how to use the law of sines to solve real life problems

    Read More