The deductions allowed in determining Adjusted Gross Income put all taxpayers on a comparable basis. It is the amount you enter on line 9, page 1 of Form 1040. Some deductions are subtracted from Gross Income to determine Adjusted Gross Income. Other deductions are subtracted only from Adjusted Gross Income in arriving at Taxable Income.

To compute your adjusted gross income you total all items of income. (See Chapter 6.) From this amount deduct the items indicated below.

Businessmen deduct all ordinary and necessary expenses attributable to a trade or business.

If you hold property for the production of rents or royalties you subtract, in computing Adjusted Gross Income, ordinary and necessary expenses and certain other deductions attributable to the property. (See Chapter 15.)

Outside salesmen deduct all expenses attributable to earning a salary, commission, or other compensation. (See Chapter 10.)

Employees deduct expenses of travel, meals and lodging while away from home in connection with the performance of their services as employees. They also deduct transportation expenses incurred in connection with the performance of services as employees even though they are not away from home. (See Chapter 12.) If your employer reimburses you for expenses incurred, you deduct such expenses if they otherwise qualify. (See Chapter 10.)

Sick pay, if included in your Gross Income, is deducted in arriving at Adjusted Gross Income. If your sick pay is not included in your Gross Income, you may not deduct it. (See Chapter 9.)