Below-the-Line Deduction

A tax deduction one takes on one's adjusted gross income instead of one's gross income.

References in periodicals archive ?

199A deduction is a below-the-line deduction, meaning that it will not have an impact on various adjusted-gross-income thresholds.

Mechanics of the new Sec. 199A deduction for qualified business income: Here's a step-by-step guide to calculating the new deduction for passthrough businesses and determining who qualifies for the break

Similarly, it is not a below-the-line deduction, because eligible clients may claim the deduction regardless of whether they itemize.

The New 20% Pass-Through Tax Deduction: An Advisor's Guide

Under that section, for individual taxpayers, certain below-the-line deductions are acceptable only to the extent that the deductions, in the aggregate, exceed two percent of a taxpayer's adjusted gross income (AGI).