For United States individual income tax, adjusted gross income (AGI) is total gross income minus specific reductions. Taxable income is adjusted gross income minus allowances for personal exemptions and itemized deductions. For most individual tax purposes, AGI is more relevant than gross income.
These deductions reduce AGI. Amounts deductible against gross income in arriving at adjusted gross income (AGI) are called “above-the-line” deductions.
- Educators Expenses – Teachers’ Classroom Expenses
- Business Expenses for Certain Employees
- Health Savings Account Deduction
- Moving Expenses
- Self-Employment Tax
- Self-Employed SEP, SIMPLE, and Qualified Plans
- Self-Employed Health Insurance
- Penalty on Early Withdrawal of Savings
- Alimony Paid
- IRA Deduction
- Student Loan Interest
- Tuition and Fees
- Domestic Production Activities