Reba’s 2011 income tax calculation is as follows:

Gross income ............... $120,000

Deductions for adjusted gross income ....... (3,000)

Adjusted gross income ........... $117,000

Deductions from adjusted gross income:

Standard deduction ............. (5,800)

(Total itemized deductions are $2,100)

Personal exemption .............. (3,700)

Taxable income .............. $107,500

Before filing her return, Reba finds an $8,000 deduction that she omitted from these calculations. Although the item is clearly deductible, she is unsure whether she should deduct it for or from adjusted gross income. Reba doesn’t think it matters where she deducts the item, because her taxable income will decrease by $8,000 regardless of how the item is deducted. Is Reba correct? Calculate her taxable income both ways. Write a letter to Reba explaining any difference in her taxable income arising from whether the $8,000 is deducted for or from adjusted gross income.