an above the line deduction refers to a deduction for agi
Above-the-line deduction
In the United States tax law , an above - the - line deduction is a deduction that the Internal Revenue Service allows a taxpayer to subtract from his or her gross income in arriving at `` adjusted gross income '' for the taxable year . These deductions are set forth in Internal Revenue Code Section 62 . A taxpayer 's gross income minus his or her above - the - line deductions is equal to the adjusted gross income . Because these deductions are taken before adjusted gross income is calculated , they are designated `` above - the - line . '' Thus , those deductions allowed in computing `` taxable income '' under section 63 of the IRC are `` below the line deductions '' ( thus , adjusted gross income represents `` the line '' ) . Above - the - line deductions may be more valuable to high income taxpayers than below - the - line deductions . 
In the United States tax law , an above - the - line deduction is a deduction that the Internal Revenue Service allows a taxpayer to subtract from his or her gross income in arriving at `` adjusted gross income '' for the taxable year . These deductions are set forth in Internal Revenue Code Section 62 . A taxpayer 's gross income minus his or her above - the - line deductions is equal to the adjusted gross income . Because these deductions are taken before adjusted gross income is calculated , they are designated `` above - the - line . '' Thus , those deductions allowed in computing `` taxable income '' under section 63 of the IRC are `` below the line deductions '' ( thus , adjusted gross income represents `` the line '' ) . Above - the - line deductions may be more valuable to high income taxpayers than below - the - line deductions .
In the United States tax law, an above-the-line deduction is a deduction that the Internal Revenue Service allows taxpayers to subtract from their gross income in arriving at ``adjusted gross income'', AGI for the taxable year. A taxpayer's gross income minus their above-the-line deductions equals the adjusted gross income. A taxpayer's gross income minus their above-the-line deductions equals the adjusted gross income.
In the United States tax law , an above - the - line deduction is a deduction that the Internal Revenue Service allows a taxpayer to subtract from his or her gross income in arriving at `` adjusted gross income '' for the taxable year . A taxpayer 's gross income minus his or her above - the - line deductions is equal to the adjusted gross income . Because these deductions are taken before adjusted gross income is calculated , they are designated `` above - the - line . '' Thus , those deductions allowed in computing `` taxable income '' under section 63 of the IRC are `` below the line deductions '' ( thus , adjusted gross income represents `` the line '' ) .