Final answer:
Yes, most personal expenses like medical expenses, certain taxes, mortgage interest, investment interest, and charitable contributions can be deducted from your AGI, but there are specific rules and limits for each deduction.
Step-by-step explanation:
It is true that most personal expenses like medical expenses, certain taxes, mortgage interest, investment interest, and charitable contributions are deductible from your Adjusted Gross Income (AGI). When preparing your tax returns, you can either take the standard deduction or itemize your deductions, depending on which is more beneficial to your tax situation. If you choose to itemize, these personal expenses can be subtracted from your AGI to arrive at your taxable income. The calculation for taxable income is essentially:
taxable income = adjusted gross income - (deductions + exemptions).
Remember that there are specific rules and limits for each of these deductions. For example, medical expenses must exceed 7.5% of your AGI to be deductible. Tax benefits such as deductions and credits are subject to change, so it's essential to consult the most recent tax guidelines or a tax professional when filing your return.