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Income Tax Fundamentals and Calculations - Adjustments

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
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