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 ?
The debtor's ability to overcome the presumption of abuse must be based solely on financial considerations (i.e., adjustments to income or expenses required by special circumstances) and not of factors unrelated to a chapter 7 debtor's ability to repay his or her debts.
Our office can help you make the most of the various above-the-line adjustments to income on your 2014 tax return.
Taxpayers who have received approval from the IRS for an accounting change, or who have been ordered by the IRS to make an accounting change, must make adjustments to income to account for the net effect of the accounting change.
The steep decline in the third quarter rate stemmed from adjustments to the company's expected full-year effective tax rate from 35% to 34% as well as $14 million in additional favorable adjustments to income tax expense.
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.
* Overall, type of paid preparer does not affect the frequency of adjustments to income items.
Fiscal 1998 results include a number of one-time adjustments to income, which if excluded would reduce net income for fiscal 1998 to $13.8 million.
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.
632(a)(1) (old law prior to 1988), which limited adjustments to income to those amounts derived from or connected with New York sources.
Most adjustments to income on securities are made to the U.S.
Due to the new law being enacted on December 22, 2017, this revaluation of the DTA was accounted for in the fourth quarter of 2017 through adjustments to Income Tax Expense on the Consolidated Statements of Operations.
If you are making less than $100,000, claiming certain tax credits, claiming adjustments to income for IRA contributions and student loan interest or have capital gain distributions, you may consider filling out the (https://www.irs.gov/pub/irs-pdf/f1040a.pdf) 1040A.