AGI
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I thought that your 2024 Adjusted Gross Income (AGI) must be $84,000 or less to use Free Tax USA?

The "One Big Beautiful Bill" Act, also known as the Build Back Better Act (BBB) temporarily raises the SALT (State and Local Tax) deduction cap.
Here's a breakdown:
Current Cap: Previously, the Tax Cuts and Jobs Act of 2017 (TCJA) limited the SALT deduction to $10,000.
New Cap: The BBB increases the SALT deduction limit to $40,000, starting in 2025. This deduction phases down for taxpayers with modified adjusted gross income (MAGI) over $500,000.
Inflation Adjustment: The $40,000 limit will be adjusted for inflation, reaching $40,400 in 2026 and increasing by 1% annually through 2029.
Reversion: In 2030, the SALT deduction limit will revert to the original $10,000 cap.
Phase-out: For taxpayers with a modified AGI over $500,000, the deduction limit phases down, with a minimum cap of $10,000.

As your kid enters college, I’ll be curious to hear how all this works out.
ChatGPT said:
If your family qualifies, FAFSA won’t ask about assets at all—even if you have significant savings or investments.
To qualify:
Adjusted Gross Income (AGI) is $60,000 or less (as of 2024–2025 FAFSA),
AND at least one of these applies:
The parent filed IRS Form 1040 but didn’t file Schedules A, B, C, D, E, or F, or
The parent received certain means-tested federal benefits (like SNAP, Medicaid, SSI, etc.).
—-
Will you have no schedules to file either to ensure your assets don’t get counted?

OP, your question has already been answered but I make a couple more comments.
1. phase out starts at $500k so if you make $514k your going to get basically the whole benefit anyways.
2. It’s 2025, don’t use the internet to research the type of question. Ask ChatGPT/Gemini. It will tell you exactly how much deduction you will get for any AGI. It will put in a table or chart if you want.

Your not thinking about it in the right way. Basically AGI (eventually super intelligence) is the largest structural event ever and has a lot of unknowns. What is known is that it’s more likely than not to eventually be here and that it will realign systems. It helps to look at it this way. Our current world operates under the Westphalian system (created in 1648 and is basically the idea of sovereign nations). Its only upgrade was in 1945 with the UN as Hitler almost collapsed the Westphalian system. Hitler had impact on national structure. AGI will have impact on civilizational structure. Basically it is a forcing function to reveal how worthy the structure of all our systems are. Systems built outside of systems like Bitcoin are essentially the only safe structures. To sum it up - no one truly knows what the hell will happen, but it is certain that AGI is more likely than not to be the largest structural event ever with a lot of uncertainties.

China and the United States have failed in their attempts to apply AI on a large scale. But PR articles continue to promote it. Europe concluded that "AGI has not fundamentally changed." But Wall Street capital continues to promote it.

That’s not what NBC said. They proved that the new law increases your AGI by so much many seniors will be homeless. I can’t afford to pay taxes on money that doesn’t exist like they said the law does. 

Let's not go all the way down the road to AGI. That's not close.
But I don't put it past corporate America to at least take a pass at cutting headcount with AI as a justification, whether or not it's actually effective.

i think we're missing the point. AI is being sold right now to enable its continued development.
Once we get AGI, the access gets shut off, and the USA becomes a technoauthoritarian state.

If we actually get to AGI/ASI there’s exactly two options:
1. UBI and insanely high taxes for companies to pay for it. Only way to keep demand and consumption high.
2. Fully Automated Luxury Gay Space Communism

What are the modifications to AGI for this particular MAGI?

It's now clear to me from several sources that the $6,000 per person over 65 is not an above the line deduction and won't change your AGI. However, it was designed so that it could be taken in addition to either the standard deduction or itemized deductions. For states like New Mexico, where you can reduce AGI by the amount of social security before computing state income tax, this means that the state taxability of social security doesn't really change.

AGI doesn’t exist.
Teleporters will also change the world. Same with war drive and replicators.

LLMs are not capable enough and are too random to be useful in situations that require precision, predictability and low error rates. If technologies keep improving and we somehow manage to get closer to real AI (yes, what we call AI today is not AI) something more resembling AGI, then yes, we could see a massive job replacement. The effects this will have we can't really predict, I think it depends on how fast it happens. Humans are very adaptable, but if the transition is very rapid then I believe we will see a lot of misery and suffering. If the transition is slow, takes 10-15 years then I think society can adapt, even though this will also have some collateral damage. As for who is going to buy the products without a job? Well that is something I have thought of myself and have no answer, I think these companies are all diving blindly into AI to not be left behind without thinking about the consecuences. Just invest into the bubble, ride it up and make some money for when everything turns to shit.

I was referring to a mega backdoor Roth, but it sounds like your 401k plan doesn't allow it. And my understanding is you have significant pre tax IRA dollars and you'd be screwed by the pro rata rule if you did conversions due to your high AGI. Is that all correct? I think I finally have a clear picture now

if AGI is possible then we will live in the Matrix where robots take over, bro, cause they will see us as inferior

Unless we say that something like AGI is impossible due to some law of nature or something else. AI development should eventually reach a point where it becomes more intelligent than we are and at that point we can’t control it anymore so idk about this human operator theory. Even if we can control AI indefinitely, I seriously doubt there will be billions of supervisor positions available.

How does this work with dual income households? Also, since it's based AGI, it's in your best interest for both couples to max non-Roth IRAs, non-Roth 401ks, non-Roth 457b, right? Assuming you can afford it.

I'm not sure I understand the question. My employee contributions are maxed and are Roth, but my AGI is too high for Roth IRA contributions. Non-deductible IRA contributions and Roth conversions are not advantageous to me at my current marginal tax rate. So I put the difference in taxable accounts. I actually semi-retired this year so I expect my earned income to decline over the next several years. Going forward, I do plan to fill my lower brackets with Roth conversions whilst living off the residual income from my S Corp, my wife's self-employment income (since I have yet to convince her to retire, dammit), taxable accounts, and HSAs. I'm also shopping for a new 401(k) company and perhaps the new one will allow backdoors and employer Roth contributions.

Based on what others have said, federal AGI is the same, but the standard deduction is increased for those 65 and older so federal taxable income is lower. Many states use federal AGI but only 5 use federal taxable income, if [this](https://taxpolicycenter.org/briefing-book/how-do-state-individual-income-taxes-conform-federal-income-taxes) is still accurate.