Unformatted text preview: taxpayer’s taxable income. Deductions from AGI will lower your taxes if the deductions are greater than the standard deduction amount. There are benefits to both “for” and “from” adjustments. The person who owns their own business may have more adjustments (for) reducing their AGI. However, a person who keeps track of their expenses may benefit from the deductions “from” AGI by itemizing. Hello Argenia, my original thought was both having benefits to the taxpayer; however, after reading your post it does make sense that "for" is best. (I should have read more posts before I posted my discussion answer) I like what you wrote in your last sentence, "AGI is used as the base for determining whether the taxpayer qualifies for other deductions." This is something I will take note of when I work the problems in this course as well as applying it to my own taxes. .. thanks!...
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- Spring '10
- Taxation in the United States