Adjustments to Income
Adjustments to income are expenses that directly reduce your total income, hence the amount of tax you have to pay. Basically they are specific deductions with specific eligibility requirements. You can take adjustments to income regardless of whether or not they are itemized deductions; however, either way will always warrant a paper trail.
On your tax return you will see the list of possible adjustments, which include these:
• Classroom expenses
• Qualifying performing artists and other professions
• IRA deductions
• Student loan interest
• Tuition and fees deduction
• Health savings-account deduction
• Moving expenses
• Self-employment tax deduction
• Self-employment health insurance
• SEP deduction
• Early withdrawal ...