Above The Line Deductions – Killer Advice
Above The Line Deductions – Explained And Examples
There are many above the line deductions available to business and personal taxpayers. Most are normal itemized deductions on schedule A of the Form 1040, personal income tax return. Above the line tax deductions are used to get your adjusted gross income (AIG) from your total gross income.
This is the basic formula so you can see how Adjusted income is related to your gross income.
Adjusted gross income (AGI) = Gross Income IRC (61)(a) – Above The Line Deductions (62)(a)
We have listed some of them for your consideration. You may or may not qualify for these. Make sure you research each of these to ensure that you are entitled to the deductions.
List Of Above The Line Deductions
- Trade And Business Deductions
- Certain expenses of officials
- Certain expenses of elementary and secondary school teachers
- Certain expenses of members of reserve components of the Armed Forces of the United States
- Losses from sale or exchange of property
- Deductions attributable to rents and royalties
- Certain deductions of life tenants and income beneficiaries of property
- Pension, profit-sharing, and annuity plans of self-employed individuals
- Retirement savings
- Penalties forfeited because of premature withdrawal of funds from time savings accounts or deposits
- Alimony
- Reforestation expenses
- Certain required repayments of supplemental unemployment compensation benefits
- Jury duty pay remitted to employer
- Deduction for clean-fuel vehicles and certain refueling property
- Moving expenses
- Archer MSAs
- Interest on education loans
- Higher education expenses
- Health savings accounts
- Costs involving discrimination suits
- Attorneys fees relating to awards to whistle blowers
This is not meant to be an all inclusive list, nor complete up to date information. If there is a above the line tax deduction that you think might benefit you, then please do further research. We can even speak with you about the deductions you may qualify for. Contact our office if you would like to set up a consultation regarding above the line deductions, or any other tax or financial matters.