Above-the-line deduction

Certain expenses that deducted to reduce taxable income even if you don't itemize deductions. These money-saving write-offs, officially called adjustments to income, include: deductible contributions to traditional IRAs (individual retirement accounts), SIMPLE and Keogh plans, contributions to HSAs (health savings accounts), job-related moving expenses, any penalty paid on early withdrawal of savings, the deduction for 50% of the self-employment tax paid by self-employed taxpayers, alimony payments, interest on higher education loans and qualifying college costs, any jury duty pay forfeited to your employer and qualifying travel expenses for members of the Reserves and National Guard. These are considered above-the-line deductions because they are subtracted before arriving at adjusted gross income. Exemptions and itemized deductions are subtracted from AGI to arrive at taxable income.