 TITLE: What Does Adjusted Gross Income Mean? CONTENT: AGI is your gross—or total—income minus a few \"adjustments.\" Gross income includes wages, dividends, capital gains, business income, retirement distributions and additional items like tips, rental property income and unemployment benefits. Adjustments include educator expenses, student loan interest, alimony you've paid or contributions you've made to a retirement account.\nTo distinguish between three types of income you may be asked about:\n*   **Gross income** is all income that is not specifically tax-exempt.\n*   **Adjusted gross income** subtracts \"above the line\" adjustments like student loan interest and retirement contributions.\n*   **Taxable income** is AGI minus standard or additional itemized deductions. END