In the United States, an above-the-line deduction is a term used to describe those deductions which the Internal Revenue Service allows a taxpayer to subtract from his or her gross income in arriving at "adjusted gross income" for the taxable year. These deductions are set forth in Internal Revenue Code Section 62. A taxpayer's gross income minus his or her above-the-line deductions is equal to the adjusted gross income. Because these deductions are taken before adjusted gross income is calculated, they are termed "above-the-line." Thus, those deductions allowed in computing "taxable income" under section 63 of the IRC are termed "below the line deductions" (thus, adjusted gross income represents "the line"). Above-the-line deductions are considered more valuable to taxpayers than below-the-line deductions.