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2 replies

ghost
Employee
June 3, 2019
Adjusted gross income = earned income? NO.
Employee
June 3, 2019

Earned Income is just what it says, income earned as wages or self-employment income.  Adjusted Gross Income includes all other forms of taxable income, such as capital gains or losses, taxable social security,dividends, interest, etc.  Other forms of income, such as scholarships can become considered as earned income if certain conditions are met, but for most taxpayers the information above is sufficient.

June 3, 2019
So when asked is “Earned Income” for the current year less than the previous year do we answer that question based on our previous years AGI?