What term is used for deductions that are subtracted from gross income to determine adjusted gross income?

The term "adjustments to income" refers specifically to certain deductions that are made from gross income to arrive at the adjusted gross income (AGI). These adjustments can include various expenses such as contributions to retirement accounts, student loan interest payments, and educator expenses, among others.

The purpose of calculating AGI is important in the tax process, as it is used to determine eligibility for various tax benefits and credits. Adjustments to income are beneficial because they lower the taxpayer's overall taxable income, potentially reaching a lower tax bracket and resulting in tax savings.

The other terms mentioned do not correctly describe this process. "Deductions for adjustments" is not a standard term used in tax vocabulary. "Standard deductions" are fixed amounts that taxpayers can deduct from their taxable income but are applied after AGI is calculated. Similarly, "itemized deductions" are specific expenses that can be deducted from AGI and are used as an alternative to the standard deduction when filing taxes. Thus, while related, they serve different purposes in the overall tax process.