Final answer:
Deductions for adjusted gross income include capital losses (within limits), alimony paid (for agreements pre-2019), contributions to qualified retirement accounts, and health insurance for self-employed persons. Mortgage interest and personal and dependency exemptions are not deductions for AGI.
Step-by-step explanation:
When determining which items are deductions for adjusted gross income (AGI), it is important to understand that adjusted gross income is your total income subject to tax minus specific deductions that are allowed by the IRS before itemized or standard deductions are applied. The following can be deducted from AGI:
- Capital losses - Limited to the gains, plus $3,000 ($1,500 if married filing separately).
- Alimony paid - For agreements made or changed after 2018, not deductible.
- Contributions to (non-Roth) qualified retirement accounts - Traditional IRAs, 401(k)s, and certain other retirement accounts qualify.
- Health insurance for self-employed persons - Deductible to a certain extent, based on income and other factors.
However, mortgage interest on a personal residence and personal and dependency exemptions are not deductions for AGI; instead, they are itemized deductions (mortgage interest) or are no longer available under tax law changes post-2017 (personal and dependency exemptions).