Is it possible to have a negative adjusted gross income

Many of the deductions and credits that taxpayers commonly take advantage of each year are subject to AGI limitations. If you itemize deductions, for example, you must reduce your medical and dental expenses by 7.

This means that you can only deduct the amount that exceeds 7. Therefore, the lower your AGI is, the more of your medical and dental expenses you can deduct. Even some of your adjustments to income are subject to AGI limitations despite the fact that those deductions are necessary to calculate your AGI. If you live in a state that requires you to file annual income tax returns, your AGI can also impact your state taxable income. This is because many states use your federal AGI as the starting point for calculating your state taxable income.

And if you claim a tax credit, such as the lifetime learning credit, for your school expenses, the IRS requires that your MAGI be below certain thresholds in order to claim the credit. Remember, with TurboTax , we'll ask you simple questions about your life and help you fill out all the right tax forms. Whether you have a simple or complex tax situation, we've got you covered. Feel confident doing your own taxes. Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest.

For Simple Tax Returns Only. If you have obtained your medical insurance through a government marketplace, employing any of the strategies mentioned could impact the amount of your allowable premium tax credit. If you would like to discuss how these strategies might provide you tax benefit based upon your particular tax circumstances or would like to schedule a tax planning appointment, please give our office a call. Are You Ready To learn more about how wf can help you?

Let's Start The Discussion. Having a Low Taxable Income Year? Ways to Take Advantage of It. Married Filing Jointly. Head of Household. Married Filing Separate. Enter a user name or rank. Turn on suggestions. Showing results for. Search instead for. Did you mean:. Level 2. Our last year's adjusted gross income was negative.

Is this amount considered as deduction in this year's return? Accepted Solutions. New Member. Returning Member.