1. Money

Discuss in my forum

Adjustments to Income

Tax deductions that you don't need to itemize


Americans can take avail themselves of various deductions directly on their tax return. These don't need to be itemized on a separate schedule: they appear directly on the tax return. These deductions are called adjustments to income since they "adjust" or reduce your income to arrive at your adjusted gross income. They are also called "above the line" deductions (meaning they appear above the line on the tax form for adjusted gross income).

Here's a list of adjustments to income:

What's Strategic about Adjustments to Income?

I much prefer these various adjustments to income over itemized deductions. For one thing, they directly reduce a person's adjusted gross income. You can also take adjustments to income in addition to your standard deduction or itemized deductions. And most importantly, these deductions are not added back when calculating the alternative minimum tax.
  1. About.com
  2. Money
  3. Tax Planning: U.S.
  4. Tax Deductions
  5. Adjustments to Income - Federal Tax Deductions

©2014 About.com. All rights reserved.