The deduction for foreign taxes paid does not reduce “Adjusted Gross Income” (or any version of “Modified Adjusted Gross Income“). As you can see on the 1040 (here), the “Itemized Deduction” total (which includes the foreign tax deduction) appears on line 12, right below Adjusted Gross Income, so it’s subtracted after AGI is calculated.
There are actually different “Modified AGIs” for different purposes in the tax code, but they always involve adding some deductions back into the regular AGI, so that answer would be true regardless of which version you’re dealing with. (And although some are added back, the deductions which are subtracted before AGI is calculated can be seen in Part II of Schedule 1, here.)
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