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Chapter 16: Adjustments

There are many adjustments to taxable income such as:

  • IRA deduction
  • Student Loan Interest Deduction
  • Tuition and Fees deduction
  • Moving expenses
  • Adjustments for the self employed:
    • one half of self employment tax
    • Keogh, SEP and SIMPLE plans
    • Self employed health insurance deduction
  • Other adjustments
    • Educator expenses
    • Penalty for early withdrawal of savings
    • Alimony paid
    • Line 35 Adjustments

Adjustments are certain deductions (subtractions) from your total income taken directly on page 1 of Form 1040. You do not need to itemize adjustments of Form 1040 Schedule A, Itemized Deductions.

Subtracting your adjustments from your total inocme on line 22 of Form 1040 results in your adjusted gross income (AGI) that is used for a number of tax purposes such as figuring the limits on credits. If you do not claim any of the adjustments, your total income and adjusted gross income as the same.

IRA Deduction

IRA Deduction Amount

Employer Retirement Plans

Nondeductible Contributions

Student Loan Interest Deduction

Tuition and Fees Deduction

Moving Expenses

Requirement For A Qualified Move

Deductible Moving Expenses

Figuring the Amount of the Deduction

Adjustments for the Self Employed

Other Adjustments

Educator Expenses

Penalty on Early Withdrawal of Savings

Alimony Paid



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