Final answer:
Qualifying expenses that are otherwise deductible can be subtracted from the taxpayer's adjusted gross income to reduce their taxable income.
Step-by-step explanation:
When taxpayers have qualifying expenses that are otherwise deductible, those expenses can be subtracted from their adjusted gross income (AGI) to arrive at their taxable income. The deductible expenses reduce the amount of income that is subject to taxation. Examples of qualifying expenses can include business expenses, medical expenses, education expenses, and charitable contributions.
In this case, the taxpayer can claim deductions for these qualifying expenses on their tax return, which can help reduce their overall tax liability. Deductions are subtracted from the taxpayer's AGI, resulting in a lower taxable income. The lower the taxable income, the less tax the taxpayer has to pay.
It's important to note that not all expenses are deductible, and there are specific rules and limitations for each type of deduction. Taxpayers must meet certain criteria and keep proper documentation to claim these deductions.