the line” reduces adjusted gross income and may indirectly affect the deductible portion of other expenses which are to be deducted “below the line”.Deductions from adjusted gross income are in the form of itemized deductions. Most personal expenses are not deductible, but those that are must be deducted fromAGI as itemized deductions. In addition, most investment expenses, as well as most job-related expenses of employees, must be deducted from AGI, typically as miscellaneous itemized deductions. Miscellaneous itemized deductions, are deductible to the extent that they exceed 2% of adjusted gross income. The miscellaneous itemized deduction category is comprised primarily of unreimbursed employee business expenses, investment expenses, and deductions related to taxes such as tax preparation fees. Itemized deductions may be deducted only to the extent they exceed the standard deduction. Thus, a taxpayer who itemized deductions do not exceed the standard deduction receive no tax benefit from his/her itemized deductions. Deductions for adjusted gross income are more advantageous for tax purposes. First, deductions for AGI can be takenin addition to the standard deduction (or itemized deduction) if greater and reduces the total AGI. The computed adjusted gross income figure is used to compute the percentage of itemized deductions that a taxpayer is allowed to include (medical expenses exceeding 10% AGI, miscellaneous deductions exceeding 2%); thus a smaller AGI will make the inclusion of these deductions more likely. Lastly, the federally computed AGI also serves as the tax base or starting point for computing taxable income in many state income taxes. Thus, the smaller the AGI, the more the taxpayer benefits. This is accomplished through deductions for AGI.