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 ?
Our office can help you make the most of the various above-the-line adjustments to income on your 2014 tax return.
As mentioned, subsection 247(10) seems to require positive adjustments to income to be made.
Reconciliation of CAD to Net Earnings For the year For the three ended months ended December 31, December 31, 2005 2004 2005 2004 Cash available for distribution $95,706 $81,718 $29,776 $22,199 Adjustments to income due to the financing method and consolidation of tax credit funds (8,214) (8,676) (1,759) 1,369 Fees deferred for GAAP purposes (36,299) (25,778) (18,372) (10,910) Non-cash items (2,855) 1,655 5,858 4,011 Adjustments for investments in partnerships 29,865 (10,681) (997) (1,506) Different carrying bases 9,201 9,098 (280) (35) Net earnings $87,404 $47,336 $14,226 $15,128
Additional net adjustments to income taxes of USD250,000 together with the part write-off of unused deferred tax assets, negatively impacted the same results.
Adjustments to income also lower your adjusted gross income (AGI), and a lower AGI can help you claim other income tax deductions and credits.
the way to insulate clients from market downturns--and obviate the need for adjustments to income distributions--is to subdivide the client's portfolio into 5-year "tranches.
Minimum required training topics include filing status, dependents, income, adjustments to income, tax computations, the earned income credit (EIC) and the child tax credit.
Several unique transactions that require adjustments to income were identified in the review of reports.
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.
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.
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.
Under a section captioned "Penalties," the IRS observes that lawsuit settlement cases usually result in significant adjustments to income.