Adjusted Gross Income, Explained in Four Minutes | WSJ

How do you find your adjusted gross income? And how does it impact the rest of your tax return? For starters, financial stress is the highest it’s been since 2015 and tax lingo isn’t always intuitive.
To help explain your tax return, WSJ breaks down some key terminology - from gross income to above the line deductions - and explains how each connects to one important number: your adjusted gross income.
0:00 What is adjusted gross income?
0:45 How to calculate your AGI
2:43 How to save money using your AGI
WSJ Glossary
Markets and economics are complex. It's easy to be overwhelmed by a sea of wonky indicators and lose track of why they matter. This series breaks down the basic terms and ideas that move the markets.
#Taxes #AGI #WSJ

Пікірлер: 31

  • @TWENTY6ENTERPRISE
    @TWENTY6ENTERPRISE Жыл бұрын

    Please do a 10,000 hour long video on how to fill out the U.S Tax forms. Make it into 1 hour long videos and break it down into episodes and seasons. Introduce new characters with different life issues so we can see how it's filled out differently. Many Americans will thank you.

  • @pranavmahajan4190

    @pranavmahajan4190

    6 ай бұрын

    lol

  • @u3vs62cja
    @u3vs62cja Жыл бұрын

    I still don’t understand why it isn’t automatically done for you like in loads of other developed countries. In the UK it’s taken out your pay before you see it.

  • @coding9409

    @coding9409

    Жыл бұрын

    Because congress does not work for the people but instead for the tax preparation companies. Tax preparation companies like TurboTax lobby congress and give them campaign contributions.

  • @musak.4068

    @musak.4068

    Жыл бұрын

    1. We use a progressive tax system 2. It IS deducted from employee wage/salary automatically. The thing is the deductions, adjustments, credits, debits all apply to people who make money OUTSIDE of being employed. I haven't worked a job in about 6yrs. I've been buying and selling stock equities. I am NOT employed. Therefore I have to do my own taxes, it is not automatic for me. My cousin works for the state child services department. That's his only source of income. These deductions are automatic for him. 3. Filing taxes exist for two reasons. Employees file taxes so that they can get their tax returns for the previous year of paying taxes. You will NOT receive your refund unless you filed. The other reason we file is for all of those who make money OUTSIDE of being employees like I mentioned. BOTH groups are eligible for various incentives and credits which can earn them a tax refund. 4. Tax refunds are checks we receive for "paying stuff." The IRS has a list of things we can count against our salary/wages for the year. If you do not file them in to factor against your earned income, then you won't receive it. Someone who has no children might receive a $2000 return. Someone working that same job, for the same salary, but has a child, will receive $3500. (Just an example to illustrate the importance of filing. The government isn't magically aware of our circumstances.) Hope this cleared your confusion. The primary issue for Americans is that K-12 Public Education does not teach us about filing taxes. Maybe some schools offer it as an elective course. But it is not standard required course across the board. (K-12 means Kindergarten to 12th Grade ~5yrs old to 18)

  • @SB-xz3it

    @SB-xz3it

    Жыл бұрын

    @@musak.4068 Confusion creates an opportunity by the government to misappropriate

  • @musak.4068

    @musak.4068

    Жыл бұрын

    @@SB-xz3it I agree

  • @mickbadgero5457
    @mickbadgero5457 Жыл бұрын

    This is silly. If taxes were easy, everyone could do them. That's not the goal of taxes. The goal is to make them too complicated for anyone to do correctly.

  • @saahiliyer11

    @saahiliyer11

    Жыл бұрын

    It depends on how complicated a life you have. Mine’s not, so I’m not too worried. But if you went off the deep end and tried every bit of day trading, airbnb hosting, mlm scheme under the sun, then it’s going to be a nightmare.

  • @musak.4068

    @musak.4068

    Жыл бұрын

    @@saahiliyer11 yup

  • @Qwsgwx
    @Qwsgwx Жыл бұрын

    I haven’t paid my taxes since 2003! The irs can *SMD*

  • @nathrm

    @nathrm

    Жыл бұрын

    😂

  • @ThePeterDislikeShow

    @ThePeterDislikeShow

    Жыл бұрын

    What do they do? Do you have your wages garnished or passport revoked?

  • @Qwsgwx

    @Qwsgwx

    Жыл бұрын

    @@ThePeterDislikeShow wouldn’t you like to know mr fed man?? 🤨🤔

  • @YoutubeJust-md7pf

    @YoutubeJust-md7pf

    Жыл бұрын

    @@Qwsgwx no taxation without representation

  • @exaltedpalace
    @exaltedpalace Жыл бұрын

    Very informative

  • @Squddle
    @Squddle Жыл бұрын

    Is the postage that online merchants collect included in the adjusted gross income, since there is no benefit gained? If I sell items online throughout the year and collect postage from every customer, but then use that money to pay for the postage, is it still included in the adjusted gross income, or can it be deducted from the adjusted gross income total?

  • @mlim82480
    @mlim82480 Жыл бұрын

    I don't understand why many of us have to hire someone to see how much they owe the govt.

  • @MarkDanielLouwe
    @MarkDanielLouwe Жыл бұрын

    my agi in ragnarok online, wizard class is 70

  • @nnnashed
    @nnnashed Жыл бұрын

    Good timing to post this? Yeah

  • @WtFGankalot
    @WtFGankalot10 ай бұрын

    So why is my taxable gross significantly higher than my gross income?

  • @FreshSongs-AND-SOON-Politics

    @FreshSongs-AND-SOON-Politics

    7 ай бұрын

    Good question. Cause that makes no sense. Judging by their definition, adjustable gross income can be equal to your gross, but never greater, because its all about what you did that would reduce the amount of actual working income you have. If your income is more, it may be a penalty for something, but I have no idea. Don't get me to guessing. That's crazy.

  • @yonayehezkel3150
    @yonayehezkel3150 Жыл бұрын

    How Human Nature Works Human nature is the desire to receive, also called “desire to enjoy,” and it functions by receiving what is beneficial to itself and rejecting what is harmful. Everything in our lives is built upon this calculation where we first try to distance ourselves from harm, and then seek how to draw ourselves closer to what is beneficial. Human nature also includes a multilayering of systems that work simultaneously on still, vegetative, animate and human levels. One of those systems is our bodily one, which operates involuntarily. If our bodies are healthy, then they know what is good for them and draw that goodness to themselves. After the bodily system, there is the emotional system, which also functions relatively according to instinct. From the emotional system, we move to the mind, and from the mind to the intellect, and so on. That is, we have systems over systems that concurrently work on receiving what is beneficial and rejecting what is harmful. Such is human nature and the essence of our lives. Our every desire, thought and action operates according to the calculation, “How can we receive what is most beneficial to us and reject what is harmful?”

  • @hobo393

    @hobo393

    Жыл бұрын

    Clickbaity? Thought the video was about Artificial General Intelligence (AGI)

  • @ThePeterDislikeShow
    @ThePeterDislikeShow Жыл бұрын

    I wish we'd all revolt and pay a flat tax equal to what would raise the same revenue, and refuse to play their game.

  • @nathrm
    @nathrm Жыл бұрын

    Just put 0 in all box 😮

  • @Brightly747
    @Brightly747 Жыл бұрын

    Our tax burden is atrocious. I'm a low middle income person paid more taxes than Amazon per capita. So unfair for citizens like myself to finance our government while Apple and Amazon amass fortunes and pay zero taxes.

  • @user-ko3kt3qs3o
    @user-ko3kt3qs3o4 ай бұрын

    Congress wrote the tax code so the little guys like us have to pay more taxes to make up for the taxes rich people don't pay.

  • @hobo393
    @hobo393 Жыл бұрын

    Clickbaity? Thought the video was about Artificial General Intelligence (AGI)

  • @wotube6387
    @wotube6387 Жыл бұрын

    Clickbaity? Thought the video was about Artificial General Intelligence (AGI)