Definition: Adjustments are certain expenses which directly reduce your total income. Basically these are tax deductions.
You do not need to itemize your deductions in order to claim these expenses. Instead, adjustments are considered "above-the-line" tax deductions. You claim these deductions directly on Form 1040 page one.
Adjustments include traditional IRA deduction, student loan interest, moving expenses, health insurance expenses and SEP IRA contributions for self-employed persons, and alimony paid. Here's a complete list of adjustments to income.
Adjustments reduce your total income to arrive at your Adjusted Gross Income (AGI).
Also Known As: Above-the-line deductions, adjustments to income, tax deductions
