If you’ve paid taxes a few times in your life, then you have
probably heard of “adjustments to income,” which are also commonly referred to
as “above the line deductions.” Basically, these are adjustments that you can
take on the first page of your tax return. If you’re unsure about which
adjustments to take, don’t guess! Get a tax professional to help you.
While everyone is different and will qualify for different
adjustments, some are certainly more common than others. If you’re like the
average taxpayer, then it is very likely that you will qualify for one or even
several of the following very common adjustments to income:
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SEP-IRA, Simple IRA, and 401(k) deductions for
the self-employed
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Tuition and fees deduction
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Student loan interest deduction
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Early withdrawal penalties
Again, never guess or assume when it comes to these
adjustments. Always make sure you are actually eligible for the adjustments you
are claiming and that you factor them into your taxes properly! The best way to
do this is with the help of a tax professional.
Also, make sure that you provide your tax professional with
details about you, your job, and your overall life situation since, sometimes,
different factors can make you eligible for other, less common deductions. Some
less common types of adjustments to income that can sometimes be claimed
include:
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Classroom expenses for educators
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Moving expenses
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Alimony paid
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Self-employment health insurance and half of the
self-employment tax
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Qualified performing artists and other
professions
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Domestic production activities deduction
These are just a few of many possible adjustments to income;
a tax professional can help you to find all of the ones that apply to you and,
even more importantly, can help you to use these adjustments to income to your
benefit, so don’t delay in seeking professional assistance!