Is there any way I can calculated adjusted gross income in ACS ?

Dear IPUMS staff,

I know ACS doesn’t have adjusted gross income, which CPS has. I’m wondering is there any way that I can imputed the AGI (i.e., use Taxim module) using ACS?

Thanks!

Nancy

Unfortunately, there is not a straightforward way to calculate adjusted gross income in the ACS. As you point out, this is something that the data from the CPS is much better equipped to identify.

Here’s a good approximation using income elements available in the ACS:

Preliminary AGI =

Wage Income + Investment Income + Retirement Income + 0.9235* Business Income + Social Security Income

If Preliminary AGI exceeds $40,000, set AGI equal to Preliminary AGI

If Preliminary AGI is less than $40,000, use the following AGI formula instead:

AGI =

Wage Income + Investment Income + Retirement Income + 0.9235* Business Income