Which of the following is the second step to compute AGI?

To accurately compute Adjusted Gross Income (AGI), the second step involves totaling all income adjustments. These adjustments can include various deductions that are specifically allowed for certain types of expenses, such as educator expenses, student loan interest, and contributions to retirement accounts.

The purpose of this step is to determine how much of the total income reported will be adjusted, which effectively reduces the income that is considered when calculating AGI. Once you have added up all the income items in the first step, the adjustments made will help refine the income figure into a more precise amount that reflects your taxable position.

Following this step, the process continues with subtracting the resulting figure from the total income to arrive at the AGI. Understanding this sequence is crucial for accurately filing taxes and ensuring compliance with tax regulations.