Term Answer Adjustments Adjusted gross income Deductions Standard deduction Itemized deduction Exemption Itemized deduction example ||||||| Description A. This term includes all income less certain allowable adjustments. B. This term refers to allowable expenses that are deducted from AGI. C. Many of these are based on a percentage of AGI. D. Deductions such as employee, personal retirement, higher education, and support expenses are included in this category. E. This is taxed as ordinary income if held less than 12 months. F. Reduce AGI by the standard deduction and allowable exemptions. G. This term refers to the result after deducting expenses like alimony paid and self- employment taxes, to name a few. H. This is a claim made by the taxpayer for each person supported by the taxpayer's income. 1. This is mortgage interest expense. J. This is a blanket deduction that includes various deductible expenses normally incurred by taxpayers. Capital gains tax categories Steps to AGI Steps to taxable income