1040 Income Adjustments

Overview

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

None

WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. For more information regarding WebCE administrative policies such as refunds, cancellations and concerns, please contact Support Services at 877-488-9308.

Find this course for your license:

License or Certification

Regulator

Type