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Below-the-Line Deduction

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Below-the-Line Deduction
A tax deduction one takes on one's adjusted gross income instead of one's gross income.


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The courts have also noted that the law is equitable in these situations because it treats all similarly situated taxpayers similarly In Alexander, (30) the court noted that, despite the AMT, the taxpayers were not denied their below-the-line deduction for the legal fees.
You'll see the difference in many AGI-based computations where the below-the-line deduction for charitable giving doesn't have any effect.
Under that section, for individual taxpayers, certain below-the-line deductions are acceptable only to the extent that the deductions, in the aggregate, exceed two percent of a taxpayer's adjusted gross income (AGI).
 
 
 
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