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What's the difference between a'residual' and 'adjusted' income?
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The primary difference between residual and adjusted income is that residual income is calculated without taking into account certain deductions or credits, while adjusted income takes those deductions and credits into consideration. Residual income is typically used to determine eligibility for various tax benefits such as the earned income tax credit (EITC). Adjusted income is generally used in financial planning and budgeting.