Adjustments
The "adjustments" or "deductions" to gross income are taken directly against gross income to determine Adjusted Gross Income (AGI), they are listed on lines 23-35 on the front page of the tax return Form 1040.


Common "Adjustments" to Total Income:

  • Education expenses
  • Health savings account deduction
  • Moving expenses
  • One-half self-employment tax
  • Contributions to self-employed retirement plans
  • Self-employed health insurance deduction
  • Alimony paid
  • IRA contribution deductions
  • Student loan interest deduction
  • Tuition and Fees deduction
GROSS INCOME – ADJUSTMENTS = ADJUSTED GROSS INCOME (AGI)



Standard / Itemized Deductions

Related Articles
  1. Taxes

    How To Calculate AGI For Tax Purposes

    The first step in completing your taxes is calculating your adjusted gross income. Here’s how.
  2. Taxes

    What is Adjusted Gross Income?

    Adjusted gross income (AGI) is a term from the Internal Revenue Code. AGI is used to determine a person’s income taxes due.
  3. Taxes

    Increase Your Tax Refund With Above-The-Line Deductions

    Find out about these deductions and how you can use them to lower your tax bill.
  4. Financial Advisor

    How to Deduct Medical Insurance Premiums

    An overview of tax breaks for those who pay medical insurance premiums.
  5. Taxes

    8 Tax Benefits For The Self-Employed

    Profitability in business depends on minimizing costs and maximizing resources. Here are several tax benefits that are available for the self-employed.
  6. Taxes

    What is Gross Income?

    Gross income is an individual’s total income before taxes and other adjustments are considered.
  7. Insurance

    What's a Deductible?

    With insurance, a deductible is the amount of money the insured pays out-of-pocket before the insurance company pays for the loss.
  8. Taxes

    Want A Bigger Tax Refund? Don't Itemize

    Six reasons why many taxpayers can save money and time by claiming the standard deduction.
  9. Taxes

    Explaining Taxable Income

    Taxable income is the net of gross income and allowable deductions.
  10. Taxes

    Don't Miss These Insurance-Related Tax Deductions

    Knowing the tax deductions you're entitled to can make or break your bank account. Do you know about all these insurance-related deductions?
Frequently Asked Questions
  1. What is the difference between yield and return?

    While both terms are often used to describe the performance of an investment, yield and return are not one and the same ...
  2. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  3. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  4. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
Trading Center