The more deductions are made, the less your taxable income and your taxes are less.įor example, you may be able to deduct unreimbursed medical expenses over 10% of your AGI if you choose to itemize deductions.
To arrive at your AGI, the IRS makes deductions from your gross income. The credits and exemptions you qualify for, including charitable deductions, deductions for adoption expenses, dependent tax credits, and earned income credit.
