Gross income is reduced by deductions to compute taxable income. No amount can be deducted from gross income unless allowed by the Internal Revenue Code (IRC). Above-the-line deductions are deducted from gross income to arrive at adjusted gross income (AGI). Below-the-line deductions are deducted from AGI to arrive at taxable income.Although both types of deductions ultimately reduce your taxable income, would you rather have an above-the-line or a below-the-line deduction and why?