Adjustments are referred to as above-the-line deductions because they may be subtracted from gross income regardless of whether the taxpayer itemizes deductions or takes the standard deduction amount.

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Adjustments are called above-the-line deductions because they reduce gross income and are deducted before calculating the adjusted gross income (AGI). They are available to all taxpayers, regardless of whether they itemize deductions or take the standard deduction amount. Examples of adjustments include contributions to traditional IRA, student loan interest, self-employment tax, and health savings account (HSA) contributions.

Adjustments Are Referred to as Above-The-Line Deductions Because They May