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.

Income-reduction terms used before taxable income is finalized, from above-the-line adjustments to itemizing choices.

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.

The medical expense deduction is an itemized deduction for qualifying unreimbursed medical costs above the applicable AGI threshold.

The state and local tax deduction is the Schedule A deduction for qualifying state and local income, sales, and property taxes.

The self-employed health insurance deduction is an AGI-stage deduction for eligible health insurance premiums paid by self-employed taxpayers.

The IRA deduction is the deduction for eligible traditional IRA contributions and can reduce AGI before taxable income is computed.

The health savings account deduction is an AGI-stage deduction for eligible HSA contributions.

The educator expense deduction is an AGI-stage deduction for eligible classroom expenses paid by qualifying educators.

The casualty loss deduction is the itemized deduction for certain sudden property losses, generally limited for individuals under current federal rules.

The gambling loss deduction is the itemized deduction that can allow qualifying gambling losses up to the amount of gambling winnings.

The home office deduction is the deduction for eligible business use of a home by qualifying self-employed taxpayers.

The standard mileage rate is the IRS optional per-mile method for computing certain vehicle deductions, updated periodically by the IRS.

Principal place of business is the main business location test that often determines whether a home office qualifies for a deduction.

The actual expense method calculates deductible vehicle costs from the actual operating expenses attributable to qualifying use.

An ordinary and necessary expense is a business expense standard used to determine whether a cost is deductible in carrying on a trade or business.

The SALT cap is the federal limit on the itemized deduction for state and local taxes.

Recordkeeping is the practice of preserving the documents and logs needed to support tax deductions, basis, and other return positions.

The moving expense deduction is the deduction for qualifying moving costs that remains limited under current federal law.

The penalty on early withdrawal deduction is the AGI-stage deduction for certain bank or savings withdrawal penalties reported as income adjustments.

The alimony deduction is the deduction for qualifying alimony payments under federal rules that still apply to certain older agreements.

The self-employed retirement plan deduction is the deduction for eligible contributions to retirement plans maintained by self-employed taxpayers.

The excess business loss limitation is the rule that can cap how much business loss an individual may use in the current year.

A charitable contribution carryover is the unused portion of deductible charitable contributions carried into a later tax year.