1040 Income Adjustments


Above-the-line deductions are designed to help protect personal exemptions and itemized deductions from phase-outs. Because of these characteristics, above-the-line deductions are often considered to be the most beneficial for taxpayers.

This course focuses on the deductions available in the “Adjustments to Income” section of Form 1040, Schedule 1 which are often overlooked. Unlike most other deductions, these deductions are taken before AGI (adjusted gross income) is calculated. Often referred to as “above-the-line” deductions, they are subtracted from gross income, with the resulting number constituting the AGI. Therefore, above-the-line deductions apply to a taxpayer regardless of whether or not he or she itemizes.

Learning Objectives

Upon completion of this course, students will be able to:

  • identify the conditions that must be met, and determine the amount of adjustments to gross income deductions than can be claimed by individuals who are:
    • reservists, fee-based government officials, and/or performing artists
    • owners of health savings accounts
    • self-employed and paying for health insurance
    • payers of alimony or student loan interest
    • contributors to an IRA

Tax Year: 2023-2024

Designed For

CPAs, EAs, and other tax professionals

Advanced Preparation


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