adjustments to income


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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.

adjustments to income

Any of various amounts a taxpayer is allowed to subtract from his or her gross income when calculating adjusted gross income. These adjustments are permitted even if the taxpayer does not itemize deductions during a tax year. Allowable adjustments of particular interest to investors are interest penalties on early savings withdrawals and payments into IRAs and Keogh plans. See also adjusted gross income.
References in periodicals archive ?
If this coalition government want to make the benefits system less complex all they have to do is scrap Working Families Tax Credit and make the necessary adjustments to Income Support.
The Service determined the termination was inadvertent, but required the beneficiary to make any necessary adjustments to income and basis to reflect his share of the S corporation's income.
Fiscal 1998 results include a number of one-time adjustments to income, which if excluded would reduce net income for fiscal 1998 to $13.
Section 247 has three main elements: a statutory expression of the arm's length principle as the basis on which adjustments to income and the cost of property may be made'(6) a specific transfer pricing penalty;(7) and documentation requirements that, if not satisfied at a threshold level, will engender the imposition of the penalty(8) in respect of adjustments to income and the tax cost of property.
Also, it cannot directly enter IRA adjustments to income and Keogh plan amounts into form 1040.
Cash net income is derived from GAAP net income, adjusting for the following items: (a) amortization of intangible assets acquired in business combinations, primarily customer related intangible assets; (b) non-operating expenses primarily associated with the refinancing of our debt and the termination of our interest rate swaps in March 2012 and May 2011; (c) adjustments to income tax expense assuming conversion of non-controlling interests into shares of Class A common stock; (d) share-based compensation; and (e) costs associated with our separation from Fifth Third Bank and acquisition and integration costs in connection with our acquisitions in 2010.
These are among the topics covered in the Income Tax Course curriculum: Filing requirements, Exemptions and adjustments to income, Wages, income and taxes, Interest and dividend income, Earned Income Credit, Retirement contributions.
Minimum required training topics include filing status, dependents, income, adjustments to income, tax computations, the earned income credit (EIC) and the child tax credit.
These non-cash adjustments to income tax expense are expected to reduce net earnings by approximately $300,000 for each of the fiscal years ended June 30, 2002, 2003, and 2004, as well as reduce the net earnings for the fiscal year ended June 30, 2005, previously reported by the company in its earnings release on August 17, 2005, by approximately $300,000.
With respect to the passive loss provision, for example, section 58 provides expressly that, in applying the limitation for minimum tax purposes, all minimum tax adjustments to income and expense are made and regular tax deductions that are items of tax preference are disregarded.
Record any ultimate realization of proceeds or liability incurred under the outstanding hedges as additional adjustments to income at the time such proceeds or liabilities are determinable.