An above-the-line deduction reduces both adjusted gross income and taxable income.

Name: An above-the-line deduction reduces both adjusted gross income and taxable income.
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An above-the-line deduction, also known as an adjustment to income, is deducted from the taxpayer's gross income to arrive at the adjusted gross income (AGI). This reduces not only the taxpayer's AGI but also their taxable income, making it a valuable tax planning tool.

An Above-The-Line Deduction Reduces Both Adjusted Gross Income and Taxable