Name two common deductions from gross income used to calculate adjusted income.

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When calculating adjusted income, you start with gross income and subtract deductions that reduce the amount considered for eligibility or rent calculations. Two common deductions used for this purpose are dependent allowances and unreimbursed medical expenses for elderly or disabled household members. Dependent allowances lower gross income by a fixed amount for each dependent, reflecting the support obligations of the household. Unreimbursed medical expenses for the elderly or disabled reduce gross income by the portion of medical costs that aren’t reimbursed, recognizing the financial burden of essential care. These deductions act to lower the starting point (gross income) before applying any other calculations. Other items like mortgage interest and property taxes are usually itemized deductions rather than adjustments to gross income, utilities and maintenance aren’t deductions from gross income, and lottery winnings are considered income.