Last year Pilar earned $32,200 before taxes working as a police officer. She alsoearned $9,600 before taxes working part-time on the weekends as a security guard. She had no other income during the year. The $41,800 she earned before taxes isknown as her on her income tax return.

Adjusted gross income.

Explanation:

Adjusted gross Income: It is a gross income of individual after deducting certain adjustment, like; wages, dividend, capital gain, etc. It is first step in calculation of income tax of individual. It is important to understand difference between gross income and adjusted gross income, otherwise, people end up paying more income tax than they owe.

Goss Income: It is total amount of money individual earn before tax is paid. It include all the earning in addition to the salary of employee. Gross income is calculated before adjusted gross income.

In the given case, Pilar has earned $41800 before taxes is known as her adjusted gross income on her income tax return.

answertop managers;

answermarketing metrics;