Description Answer Term A. This is mortgage interest expense. Adjustments B. This is adjusted annually for changes in cost of living. Adjusted gross income C. This can be claimed if taxpayer provides more than half their support. D. Reduce AGI by the standard deduction and allowable exemptions. Deductions Standard deduction E. This term equals gross income less adjustments. Itemized deduction F. This can be either standard or itemized. G. Examples of this term indlude charitable deductions, state and local taxes, and moving Exemption Itemized deduction example expenses. H. This is used to calculate limits for certain itemized deductions. I. This figure is based on tax bracket, 5% to 15% tax rate if held over 12 months. Capital gains tax categories Steps to AGI J. Taken against gross income, they result in AGI. Steps to taxable income PPPPEPL PPPL