Deductions and Adjustments

The standard deduction is a fixed deduction amount that reduces taxable income without requiring the taxpayer to itemize specific expenses.

An itemized deduction is a deduction claimed by listing qualifying expense categories instead of using the fixed standard deduction.

An above-the-line deduction is a deduction taken before taxable income is computed and commonly affects adjusted gross income directly.

Tax terms for deductions that reduce income before or after the return reaches the taxable income stage.

The charitable contribution deduction is the deduction concept tied to qualifying charitable gifts and often comes up in itemizing discussions.

The mortgage interest deduction is the deduction concept tied to qualifying mortgage interest and is commonly part of itemized-deduction discussions.

The student loan interest deduction is a deduction concept tied to qualifying loan interest and is commonly discussed as an above-the-line deduction.

A business expense deduction is the deduction concept tied to qualifying business costs that reduce business profit on the return.