Adjustment to Income

Adjustments to Income

In U.S. tax, deductions that reduce one's taxable income. When calculating a taxpayer's tax liability, one takes the amount of money he/she has made over the tax year and takes away deductions such as contributions to IRA accounts, business expenses, and so forth. One refers to these deductions as adjustments to income.

Adjustment to Income

An expense that may be deducted even if the taxpayer does not itemize deductions. Adjustments to income are subtracted from gross income to arrive at adjusted gross income.
References in periodicals archive ?
As mentioned above a $447 thousand adjustment to income tax expense was recorded for revaluing deferred tax assets for the new tax law.
Historical-cost direct investment income excludes capital gains and losses and the current-cost adjustment to income on equity.
Also, this deduction is taken as an adjustment to income, reducing your AGI.
This benefit can be taken as an adjustment to income on the Form 1040.
Individuals can take this benefit as an adjustment to income and do not have to itemize deductions to claim it.
The deduction is 100% (for 2003) of the amount paid for medical insurance for the employee-shareholder and his or her spouse and dependents, and is reported as an adjustment to income.
Purchasers of either hybrid or other alternate-fuel vehicles can take the deduction as an adjustment to income and don't have to itemize.
A more satisfying interpretation is that the revision of the original September 11,1997, proposal introduced the setoff aspects of the penalty calculation to ensure consistency between the overall adjustment to income arising from the cumulative effect of applying subsection 247(2) to all of a taxpayer's transactions, and the penalty base (which, in the original version, lacked the same cumulative effect).
In 1996, no adjustment to income is necessary since actual income [TABULAR DATA FOR ILLUSTRATION 2 OMITTED] satisfies the contingency.
Student loan interest deductions are taken as an adjustment to income.
What's more, the IRS has said that Medicare premiums paid by self-employed individuals can be taken as an above-the-line adjustment to income.