1040 Income Adjustments

Course Description:

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.

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. The course will discuss in detail some of the common and not-so-common above-the-line deductions.

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
  • eligible for the Domestic Production Activities Deduction.

Tax Year: 2018

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